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Bats Said in SEC Settlement Talks Over High-Speed-Trading Perks

Bats Global Markets Inc. is in negotiations with U.S. regulators to settle accusations that Direct Edge, the stock exchange operator it bought in January, gave unfair advantages to high-frequency traders, according to a person familiar with the matter.

The settlement talks follow a U.S. Securities and Exchange Commission inquiry begun more than two years ago into key facets of modern markets, including order types -- or instructions for handling transactions that traders can send to exchanges. Critics including Haim Bodek, a former Goldman Sachs Group Inc. trader, allege that the fastest traders use the dozens of order types available at exchanges to disadvantage other investors.