Flash commands give a quantity of traders an upper hand in the purchase or sale of their stocks. The lead is only a flash benefit, but it is sufficient to get the attention of the SEC.
For the next 60 days, the modification will be up for general public remark and can be adopted by the SEC after that time.
Flash orders are one of those things that every now and then occurs in the trading world. They actually have begun to become quite a hot matter on Wall Street although due to individuals asking questions about fairness on the Street.
From MSNBC:
A flash order refers to certain members of exchanges — habitually big corporations — buying and selling reports about ongoing stock deals milliseconds preceding to that information being released to the public. Numerous big banks and financial corporations, using high-speed PC programs, can get a speedy, sneak peek at how additional investors are trading, giving them a brief peer into the direction of the market.
The other rule on the table talks about more transparency from credit rating networks. For its position in the subprime mortgage mess, the industry that performs credit ratings has been shamed. The practices of these agencies (which is made up of Standard & Poor’s, Moody’s Investors Service, in addition to Fitch Ratings) will be able to be recorded by the public and will also be subject to restraints.
It is not reasonable when some companies have the ability to trade before the general public is allowed to do so. When there are especially high speed computers and company information and reports accessible, then of course they will have an tiny advantage. I do not believe that the flash ordering has been exactly beneficial to a lot of companies on Wall Street since if you look at how many corporations have performed over the past couple of months and specially when you look at the previous year, you can tell that they are not accurately doing great. A lot of the banks and financial institutions have only remained open only by the grace of our taxpayer dollars.
I am happy that they will no longer be helped out by any of the cash that I pay the government. I know that thepublic of the United States is ready to go after the boards of a lot of these businesses because of all the bonuses that they seem to be bringing in every couple of months; and I have to agree with the population on this one.
These regulations can be seen at the MSNBC article I’ve linked below. I would like to see what the SEC does with the public comments over the subsequent two months. In 60 days, we will see how the market is doing and I am sure that will have some impression on the SEC’s verdict as to what it is going to do with the new set of laws.
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