FBI Fraud Investigation Asks HFT Firms To Come Forward

As Michael Lewis’ book Flash Boys shines a public spotlight on high frequency trading (HFT), the Federal Bureau of Investigation is almost immediately following the book’s release by examining if the trading practice violated US laws. The issue officially came to light when the Wall Street Journal published an article detailing the investigation near 6 p.m. EST Monday.  According to the article, the probe was launched one year ago, is in its early stages and involves a variety of strategies.  This morning Bloomberg, however, is reporting the investigation is part of a multi-year crackdown on insider trading.  Earlier Monday morning,…