SEC To Weigh Ban On Flash Trading

Law360, New York (August 4, 2009, 7:18 PM EDT) -- The U.S. Securities and Exchange Commission is considering regulations aimed at restricting or banning so-called flash orders, which employ specialized software to help give some stock traders a split-second advantage over other market participants.

In an statement distributed Tuesday, SEC Chairwoman Mary Schapiro said she was “concerned about the issues presented by dark pools as well as flash orders” and had asked the agency to conduct a review of flash orders by exchanges and electronic trading systems.

“Since that review was undertaken, I have asked the...
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