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)