SEC Bans Flash Trading

After the SEC unanimously voted to ban flash trading, Senator Ted Kaufman issued the following statement summing up the issue well:

“I commend the SEC for its proposal to ban flash orders. Let’s not forget, however, that this occurred only after public exposure of the SEC’s previous okay of flash orders. Flash orders may be a symptom of a much larger problem. Now the SEC must examine the rest of the iceberg. I’m pleased that the SEC has begun a comprehensive review of market structure issues, and I look forward to that process.

“The credibility of the U.S. financial markets is essential. For investors to have confidence, the SEC must ensure that high frequency trading, dark pools, potential conflicts of interest and other market structure issues are not undermining the interests of long-term investors.”