On Friday, Attorney General Eric Holder said that the US Department of Justice has been probing on a possible insider trading following high-speed trade. The information was disclosed after the FBI and US regulators suspected something is wrong with high frequency stock traders.
According to a report from Reuters, US regulators have been examining if high speed trading are having unfair advantage over those who ordinarily trades. High-speed traders make use of computer algorithms. This allows them to speed trades and earn little amount but could add up to big profits later on.
During a hearing on the budget for the US Justice Department, Holder said,"I can confirm that we at the Justice Department are investigating this practice to determine whether it violates insider trading laws."
The US Securities and Exchange Commission together with the US Commodity Futures Trading Commission has confirmed the ongoing probe by the agencies earlier this week.
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