Too Fast, Too Frequent? High-Frequency Trading and Securities Class Actions

An individual investor calls his broker and requests $100,000 of a certain stock for his portfolio. The broker sees that shares of that stock are currently being offered at $10 a share, and that there are 4,000 shares available on the New York Stock Exchange (NYSE), 3,000 on NASDAQ, and 3,000 on the...

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Bibliographic Details
Published inThe University of Chicago law review Vol. 82; no. 3; pp. 1511 - 1557
Main Author Levens, Tara E.
Format Journal Article
LanguageEnglish
Published Chicago The University of Chicago Law School 01.07.2015
University of Chicago, acting on behalf of the University of Chicago Law Review
Subjects
Class action lawsuits
Class actions (Civil procedure)
Comments
Defendants
Efficient markets
Finance
Financial securities
Fraud
High frequency trading
Investors
Liability
Market prices
Misrepresentation
New York Stock Exchange
Plaintiffs
Prices
Securities
Security prices
Stockholders
Stocks
Studies
UNITED STATES
United States > US
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Summary:An individual investor calls his broker and requests $100,000 of a certain stock for his portfolio. The broker sees that shares of that stock are currently being offered at $10 a share, and that there are 4,000 shares available on the New York Stock Exchange (NYSE), 3,000 on NASDAQ, and 3,000 on the BATS Global Exchange, for a total of 10,000 shares. Satisfied with his ability to fulfill his client's request, the broker hits "submit"- only to find that these offerings have disappeared and that the cheapest offering price of the stock is now above $10 a share, resulting in a purchase of fewer than the expected 10,000 shares for his client.
Bibliography:University of Chicago Law Review, Vol. 82, No. 3, Summer 2015, 1511-1557
Informit, Melbourne (Vic)
ISSN:0041-9494
1939-859X