According to a Reuters report published Friday morning, New York Attorney General Eric Schneiderman is continuing his crusade against allegedly unfair Wall Street practices. He's expected to send subpoenas to exchanges and alternative trading platforms within the next couple days to gather information about high-speed trading firms.
Two weeks ago, Schneiderman sent subpoenas to the high-speed trading firms themselves, which use ultra-fast computers and complex algorithms to make trades unimaginably quickly, sometimes in a way that doesn't seem fair (or legal). Schneiderman was looking for "details about whether the trading firms have secret arrangements with stock exchanges or other trading venues, such as dark pools, that give them the ability to trade ahead of other investors." Now, he's asking the exchanges whether or not they have arrangements with trading firms. He's also seeking information from major banks — Reuters notes that he's questioning banks that "operate dark pools, or platforms where trades take place out of sight of the rest of the market."
While Schneiderman has been going after what he perceives as unfair Wall Street practices for a year, Michael Lewis's recent book Flash Boys has ignited his pursuit of high-speed trading firms, specifically. Lewis blatantly calls the stock market "rigged" by these firms. As Mike Allen writes in Politico's Playbook Friday morning, "MICHAEL LEWIS GETS RESULTS."