Forex Trading Platforms Take Action Against “Flash” Traders

Forex Trading Platforms Take Action Against “Flash” Traders

The Financial Times recently reported that EBS, the forex trading platformowned by the electronic interdealer broker ICAP (IAP), announced that it would limit activities such as “flash” orders, which are said to distort the market.

“Flash” orders are automatic trades made at lightning speed by “high-frequency” traders, relying on speed and technology so as to make thin profit margins. As a consequence, price quotes disappear as quickly as they have emerged, creating illusory market liquidity. One of the concerns associated with those flash trades is that such rapid activity sometimes also referred to as “white noise” could potentially lead to market manipulation and instability.

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This entry was posted in Breaking News, Dark Pools, Finance, Flash Crash, High Frequency Trading and tagged , , , , , , , . Bookmark the permalink.

One Response to Forex Trading Platforms Take Action Against “Flash” Traders

  1. Pingback: Forex Trading Platforms Take Action Against “Flash” Traders

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