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The same can't necessarily be said for flash orders.
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Requiring orders to be posted for at least a second would nullify the value of flash orders and of probing the market.A group that accounts for nearly 50% of a market also introduces systemic risk.
In their proposal for regulating flash orders, they've asked the industry, not just the exchanges but the users themselves, how is the options industry different than equities and should it be treated differently?
The reality is that high-frequency "flash" orders account for a very small percentage of the total volume of orders, and their inclusion or exclusion from the market place is extremely unlikely to have a measurable positive or negative impact.
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.
In the past, Nasdaq has defended flash orders.
While markets are supposed to ensure transparency by showing orders to everyone simultaneously, flash orders are currently allowed because of a loophole in securities regulations that allows for immediate trades.
The agency proposed to ban flash orders, where exchanges flash buy and sell orders to some market participants before making them public.
Forbes: Now on flash orders?
Do you think flash orders are necessary?
Forbes: Can you define flash orders?
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