The Data-Driven Demise of the Flash Boys Myth

Recently, Reuters reported on a study by two professors at the University of California, Berkeley that, for the first time, presented data to test if the central claim of Flash Boys, and its protagonists IEX, was true. Namely, do high frequency trading strategies use information from fast data feeds to front-run investors who use slower data feeds? The answer is no. Or as one of the study’s authors put it more succinctly in the Reuters article, “that’s not happening.” (Modern Markets Initiative)

modern-markets-initiative

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s