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In the past, Nasdaq has defended flash orders.
On July 24th Charles Schumer, a Democratic senator, urged the Securities and Exchange Commission to ban flash orders.
Last month, the agency proposed banning "flash orders," which give traders a split-second edge in buying or selling stocks.
Today a major defense of high-frequency trading and flash orders is that they add liquidity to the markets.
The exchanges that offer flash orders — Nasdaq, Direct Edge and BATS — all declined to comment on Mr. Schumer's letter.
Flash orders, a type of order displayed on certain exchanges for less than 500 microseconds, expose information that is only valuable to those with the fastest computers.
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A flash order refers to certain members of exchanges — often large institutions — buying and selling information about stock trades milliseconds before that information is made public.
The companies that operate the Nasdaq and BATS exchanges said they will halt flash order trading, which gives some traders an advantage over others.
Mahoney: So, a flash order is when the market is 10 cents at 12 cents, and you send a market to a venue and at 12 cents, they might not have the best offer.
Three weeks ago, it was unlikely that 1 in 100 op-ed writers or members of congress even knew what a flash order was; now they make it appear that the majority of them have been arguing for their abolition for months.
11.18pm: Our reporter Elena Moya is at one of the many City dealing rooms to have opened especially for the election night and has just filed this dispatch: At 10pm, as the exit poll came out, the screens of spread betting company IG Index were flashing orders from some of its more than 50,000 clients worldwide.
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