Difference between revisions of "Eric T. Schneiderman"

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In 2014, Schneiderman 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.”   
In 2014, Schneiderman 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.”   


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.<ref>{{cite web|url=http://dealbook.nytimes.com/2014/03/19/news-release-distributor-to-stop-selling-to-high-speed-traders/?_php=true&_type=blogs&_r=0|name=News Release Distributor to Stop Selling to High-Speed Traders|org=The New York Times|date=March 20, 2014}}</ref>  
His office appeared to achieve several victories when the news services Thomson Reuters, BusinessWire, and MarketWired agreed 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.<ref>{{cite web|url=http://dealbook.nytimes.com/2014/03/19/news-release-distributor-to-stop-selling-to-high-speed-traders/?_php=true&_type=blogs&_r=0|name=News Release Distributor to Stop Selling to High-Speed Traders|org=The New York Times|date=March 20, 2014}}</ref>  


He also focused on the exchanges' practice of permitting 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>
He also focused on the exchanges' practice of permitting 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>