Ever try to buy something online (eg tickets from Stubhub) and just when you placed your order, the price jumps? American talk shows and news this week are talking about the heroic Canadian RBC trader Brad Katsuyama. He discovered a technique on Wall Street that allowed certain traders to electronically jump the line and make hundreds of millions of dollars by sensing your order and raising the prices at the last millisecond. Instead of taking advantage of this for himself, he blew the whistle, informed other brokerage houses and then left Royal Bank of Canada in 2012 to form a new market, IEX Group Inc.to minimize the influence of predatory strategies, Goldman Sachs Group Inc. has endorsed IEX and is the venue’s biggest broker. I watched him interviewed on 60 Minutes Sunday night. He was self-effacing and smiling until he was asked if it was legal, why didnt you do it yourself? You could actually see the guy get serious as he struggled to explain 3rd gear. Then he said It was legal but it was just wrong business.financialpost/2014/03/31/flash-boys-former-rbc-trader-hero-of-michael-lewiss-new-book-on-how-u-s-stock-markets-are-rigged/ If you invest: iamaninvestor.org
Posted on: Thu, 03 Apr 2014 10:54:54 +0000
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