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Traders Profit With Computers Set at High Speed - NYTimes.com
www.nytimes.com/2009/07/24/business/24trading.html?_r=1&hp, posted 2009 by peter in finance msm trading
The slower traders began issuing buy orders. But rather than being shown to all potential sellers at the same time, some of those orders were most likely routed to a collection of high-frequency traders for just 30 milliseconds — 0.03 seconds — in what are known as flash orders. While markets are supposed to ensure transparency by showing orders to everyone simultaneously, a loophole in regulations allows marketplaces like Nasdaq to show traders some orders ahead of everyone else in exchange for a fee.