The FBI is investigating whether high-frequency trading firms on Wall Street are manipulating the market and putting the average investor at even more of disadvantage when investing. The probe was sparked by new claims and interviews in Michael Lewis’s new book Flash Boys.
High-frequency trading is nothing new, but the computer algorithms used in the process have gotten more complex. These algorithms allow the firms to essentially see what other investors plan to do and jump in front of them to get ahead of trends.
The big firms say that Lewis’s book is misleading, arguing algorithms are innovative and positive for the economy.
More Must-Reads From TIME
- Essay: The Tyre Nichols Videos Demand Solemnity, Not Sensationalism
- For People With Disabilities, Losing Abortion Access Can Be a Matter of Life or Death
- Inside the Stealth Efforts to Smuggle Starlink Internet Into Iran
- Natasha Lyonne on Poker Face and Creating Characters Who Subvert Leading-Lady Tropes
- How to Help the Victims and Community After the Monterey Park Shooting
- Why Grocery Staples Are So Expensive Right Now
- Quantum Computers Could Solve Countless Problems—and Create a Lot of New Ones
- Where to Watch All of the 2023 Oscar Nominees
- How to Be Mindful if You Hate Meditating
