High-Frequency Trading: Government Sources
Last Updated July 2014
Letter to Mary Jo White, Chair, Sec. & Exch. Comm’n, Senator Carl Levin (July 9, 2014) (urging SEC to eliminate perceived conflicts of interest in the “‘maker-taker’ system and payments for order flow by wholesale brokers to retail brokers”).
Hearing on The Role of Regulation in Shaping Equity Market Structure and Electronic Trading Before the S. Comm. on Banking, Hous. & Urban Affairs, 113th Cong., 2d Sess. (July 8, 2014) (surveying the equity market structure and HFT landscape).
Hearing on Oversight of the SEC’s Division of Trading and Markets Before H. Comm. on Fin. Servs. Subcomm. on Capital Mkts. & Gov’t Sponsored Enters., 113th Cong., 2d Sess. (June 26, 2014) (outlining the role of the SEC Division of Trading and Markets in the SEC’s comprehensive review of U.S. equity market structure).
Complaint, Schneiderman v. Barclays Capital, Inc., Dkt. No. 451391/2014 (N.Y. Sup. Ct. June 25, 2014) (setting forth allegations and fraud charges brought by the New York Attorney General against Barclays in connection with certain disclosures and marketing statements made by Barclays relating to the prevalence and activities of high frequency traders within its dark pool).
Hearing on High Frequency Trading’s Impact on the Economy Before S. Comm. on Banking, Hous. & Urban Affairs Subcomm. on Sec., Ins., & Inv., 113th Cong., 2d Sess. (June 18, 2014) (examining the impact of high frequency trading on the economy, including testimony by Committee on Capital Markets Regulation (CCMR) member Professor Hal S. Scott).
Hearing on Conflicts of Interest, Investor Loss of Confidence, and High Speed Trading in U.S. Stock Markets Before S. Comm. on Homeland Sec. & Gov’t Affairs Permanent Subcomm. on Investigations, 113th Cong., 2d Sess. (June 17, 2014) (exploring conflicts of interest that may arise “between the obligation of brokers to provide their customers with best execution of their orders to buy or sell securities, and the brokers’ receipt of payments from other brokers for order flow and rebates from some trading venues for placing those orders directly”).
Complaint, City of Providence, Rhode Island v. BATS Global Markets, Inc., No. 14-cv-2811 (S.D.N.Y. Apr. 18, 2014) (as amended) (outlining allegations of plaintiffs in private class-action securities fraud suit brought against BATS and Barclays in connection with each defendants’ arrangements with high frequency traders).
Press Release, Office of N.Y. Atty. Gen., A.G. Schneiderman Calls For New Efforts To Eliminate Unfair Advantages Provided By Trading Venues To High-Frequency Traders (Mar. 18, 2014) (detailing the arrangements between exchanges and high frequency traders, such as co-location and sale of bandwidth, that New York Attorney General Schneiderman alleges constitute “Insider Trading 2.0”).
Securities and Exchange Commission, Investor Bulletin: New Measures to Address Market Volatility (July 23, 2012) (providing a general overview of recently instituted safeguards to protect markets from high-speed volatility, including single-stock circuit breakers and revisions to market-wide circuit breakers)
Securities and Exchange Commission, Adopting Release on Consolidated Audit Trail, Release No. 34-67457, File No. S7-11-10 (July 18, 2012) (adopting release explaining the adoption of a rule requiring national securities exchanges and national securities associations to establish and maintain a consolidated audit trail for the trading of NMS securities—a trail that would capture the activity of high-frequency traders)
Securities and Exchange Commission, SEC Approves Proposals to Address Extraordinary Volatility in Individual Stocks and Broader Stock Market (June 1, 2012) (detailing the SEC's approval of exchange and FINRA proposals relating to a tightening of the market-wide circuit breaker as well as to the establishment of a "limit up, limit down" single-stock safety device)
Securities and Exchange Commission, Order Approving, on a Pilot Basis, the National Market System Plan to Address Extraordinary Market Volatility by BATS Exchange, Inc., BATS Y-Exchange, Inc., Chicago Board of Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc. (May 31, 2012) (approving the self-regulatory organizations plan for one-year pilot program with a market-wide limit-up, limit-down mechanism to protect against market volatility)
Securities and Exchange Commission, Adopting Release on Large Trader Reporting, Release No. 34-64976, File No. S7-10-10 (Oct. 3, 2011) (requiring "large traders" to identify themselves to the SEC and provide disclosure information on their trading activities)
Chairman Mary L. Schapiro (United States Securities and Exchange Commission), Strengthening Our Equity Market Structure, speech to the Economic Club of New York (Sept. 7, 2010) (discussing the enormous changes to equity market structure and the salience of high-speed trading)
Chairman Mary L. Schapiro (United States Securities and Exchange Commission), Examining the Causes and Lessons of the May 6th Market Plunge (testimony before the United States Senate Committee on Banking, Housing, and Urban Affairs, Subcommittee on Securities, Insurance, and Investment (May 20, 2010) (testifying as to the SEC's response to and investigation into the Flash Crash of May 6, 2010)
Securities and Exchange Commission and Commodity Futures Trading Commission, Preliminary Findings Regarding the Market Events of May 6, 2010, Report of the staffs of the CFTC and SEC to the Joint Advisory Committee on Emerging Regulatory Issues (May 18, 2010) (providing the preliminary findings of the SEC and CFTC based on their review of the May 6, 2010 Flash Crash)
Chairman Mary L. Schapiro (United States Securities and Exchange Commission), Testimony Concerning the Severe Market Disruption on May 6, 2010 (testimony before the United States House of Representatives Committee on Financial Services, Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises) (May 11, 2010) (testifying as to the SEC's response to and investigation into the Flash Crash of May 6, 2010)
Securities and Exchange Commission, Concept Release on Equity Market Structure, Release No. 34-61358, File No. S7-02-10 (Jan. 14, 2010) (SEC concept release requesting comment on a number of areas of potential rulemaking relating to market structure, including high-frequency trading)
James A. Brigagliano (Co-Acting Director, Division of Trading and Markets, United States Securities and Exchange Commission), Testimony Concerning Dark Pools, Flash Orders, High-Frequency Trading, and Other Market Structure Issues (before the Senate Banking Subcommittee on Securities, Insurance, and Investment) (Oct. 28, 2009)