3 ms·
> When an order hits an exchange, the exchange sends a flash order to the owners of the proprietary data feeds before sending the trade information out on the b
by ycombobreaker 8y ago
> When an order hits an exchange, the exchange sends a flash order to the owners of the proprietary data feeds before sending the trade information out on the broader public markets, and making it available to all potential investors.
This specific behavior was only exhibited by DirectEdge (I don't recall if it was a registered exchange at the time, or just an ECN). The behavior was indeed scandalous because of the overt pay-to-play overtone, and was eliminated fairly quickly. Lewis somehow managed to mischaracterize all on-exhange HFT as this type of trading.