FBI Probe Cracks Down on High-Frequency Trading

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April 1 (Bloomberg) -- Bloomberg’s Keri Geiger reports on the FBI’s probe of abuse of information by high-frequency trading firms on Bloomberg Television’s “Bloomberg Surveillance.”

Investigation or is this an ongoing investigation?

Looks like an ongoing investigation.

Like you said earlier, the timing is with the flash and the announcement that the attorney general new york state had opened an investigation into the same area.

A lot of movement going on in the space.

A lot of people trying to figure out what is going on here and if there is illegal activity happening.

You have seen these crimes are for.

Do you look at to this as a two-year, five-year, 10 year investigation?

Where do something like this lead to?

Really hard to say how long it will go for but we should look at the insider-trading convictions and the string of insider-trading investigation some prosecutors have had on this matter.

Those go back to 2007 and possibly before.

These cases have built on each other, and you get more and more as you go along.

I think this fits nicely into that area of the investigation.

When we talk about insider trading, we think about knowledge of the company.

This is knowledge of trading activity.

Have we ever seen anything like this before?

You do see things where you can take order of information and french run on that and use that information to get it ahead of your own order of information.

Typically you are right, for insider-trading you get information about a stock price.

You trade on that and not necessarily legal.

The actual fact of it is a little bit different.

Is this at bia investigation going to litigate the flash crash of may 2010 -- is this fbi investigation going to litigate the flash crash of may 2010? i do not know if this will push the -- focus on the flash crash.

That is something we saw the sec and other regulators focus on.

It is hard to make that assumption at this point.

I am not sure what else they are looking at or what specific, so we are really in wait and see on that.

One final question if we could as you begin your day on this.

Look at the idea of exchanges of public entities.

Would you describe a lot of what we are -- ascribed this that these are very much for profit entities with the board of director that once the most gain?

-- wants the most gain?

There is definitely thinking of how you set up a system to create a fair and equitable system as well as have profitability.

High-frequency trading and types of services for data feed, those are revenue streams that the revenues have.

So you probably do see a tension there.

I think that is what the investigations are trying to give the heart to.

Guest host this morning, ian shepardson.

Also joining us, ken senna and record managing director.

We will talk to him about the technology space doing better than good in the equity markets.

Itit is about confidence in the

This text has been automatically generated. It may not be 100% accurate.

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