Difference between revisions of "Eric T. Schneiderman"

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In 2014, he spearheaded an effort to crack down on high frequency traders and began looking into services that allow fast traders to profit on important information before other investors see it. He urged regulators and stock exchanges to curb some of these practices, which he said helped foster what he called “insider trading 2.0.”  He focused on the exchanges in particular, including the New York Stock Exchange and Nasdaq, because they permit high-frequency traders to pay to "co-locate" their computer servers within the exchanges’ data centers, thereby cutting milliseconds off the time it takes them to receive market information.<ref>{{cite web|url=http://dealbook.nytimes.com/2014/03/18/schneiderman-announces-inquiry-into-services-for-high-speed-traders/|name=Inquiry Into High-Speed Trading Widens|org=New York Times Dealbook|date=March 20, 2014}}</ref>
In 2014, he spearheaded an effort to crack down on high frequency traders and began looking into services that allow fast traders to profit on important information before other investors see it. He urged regulators and stock exchanges to curb some of these practices, which he said helped foster what he called “insider trading 2.0.”  He focused on the exchanges in particular, including the New York Stock Exchange and Nasdaq, because they permit high-frequency traders to pay to "co-locate" their computer servers within the exchanges’ data centers, thereby cutting milliseconds off the time it takes them to receive market information.<ref>{{cite web|url=http://dealbook.nytimes.com/2014/03/18/schneiderman-announces-inquiry-into-services-for-high-speed-traders/|name=Inquiry Into High-Speed Trading Widens|org=New York Times Dealbook|date=March 20, 2014}}</ref>
His investigations led the news services Thomson Reuters, BusinessWire, and MarketWired to end the practice of selling their information feeds directly to high-frequency traders, given them a split-second advantage over other investors who receive the news later.


== Background ==
== Background ==

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