Frequently a point of contention for regulatory agencies, high-frequency trading has drawn ever more heat for its connection to potentially shady trading methods. Those concerns crystalized on April 11, when a group of investors filed a complaint against the world’s largest derivative trading firm, CME Group Inc. The filing accuses CME of selling market data to high frequency traders, giving them an unfair advantage.
The complaint, which was filed in Chicago, argues that CME has been giving high-frequency traders early access to buy and sell orders since 2007. That practice, they argue, not only denied CME’s customers the priority they paid for, but gave high-frequency traders an unfair advantage. The complaint seeks class action status for CME’s clients.