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This type of trading is increasingly important for banks and hedge funds.Two other things give BATS an edge on price.
Federal and state regulators have said that this type of trading violates securities laws because executives of mutual fund companies must put the interests of their shareholders first.
But they draw a distinction between the type of trading they permit and the sort of activity being investigated by Mr. Spitzer.
Mr. Harding, who runs Winton, said his success last year was part luck, part knowledge from 25 years of hard work in which he often struck a solitary path in a type of trading that had many naysayers.
Asked how he goes about this type of trading and how he decides which players to pursue, he said: "It's an interesting question, but it's one I don't want to answer.
It follows reforms pursued in France and Germany which allow national watchdogs to declare whether a particular type of trading poses a systemic risk and should therefore be isolated and placed in a separately capitalised entity.
Similar(38)
Thousands of Iranian businesses are located there and are engaged in this type of trade.
That's the type of trade-off that golfers learn to expect.
Another type of trade might involve stocks' performance immediately after an analyst downgrade or upgrade.
The rarest type of trade is the player-for-player deal.
But riders now face a new type of trade-off: packed trains, crowded platforms, interminable waits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com