SEC Votes 5-0 To Propose Flash Order Ban

Law360, New York (September 17, 2009, 6:56 PM EDT) -- The U.S. Securities and Exchange Commission voted unanimously Thursday to propose a rule banning so-called flash orders, which use specialized software to help give some stock traders a split-second advantage over other market participants.

"Flash orders may create a two-tiered market by allowing only selected participants to access information about the best available prices for listed securities," SEC Chairwoman Mary Schapiro said. "These flash orders provide a momentary head start in the trading arena that can produce inequities in the markets and create disincentives to display...
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