Firms file class action suit against U.S. stock exchanges over high-frequency trading

The filing from the eight legal firms claims that this ‘is a case about broken promises’

The Securities and Exchange Commission (SEC) is looking to enact new regulations to curb system-abusing high frequency trading (HFT) in U.S. stock markets, but even quick regulatory actions may be too late to prevent cases against these stock exchanges from making it to court.

Eight legal firms have proposed a class action lawsuit against 13 different stock exchanges and subsidiaries in the Southern District of New York, claiming that the exchanges did not do enough to protect the general trading public from the manipulations of high-frequency traders. The court document, submitted on May 22, says that this “is a case about broken promises.”

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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