Mike Shedlock

The bloom is about to come off the High Frequency Trading bloom, but only after billions and billions of dollars were skimmed off trades.

With everyone now looking the same direction and seeing the same thing, HFT trading firm Virtu Will Delay IPO, amid furor spurred by Michael Lewis Book "Flash Boys".

Virtu Financial Inc., the high-frequency trader that announced plans last month to sell shares, has delayed the deal, two people with knowledge of the matter said.

Virtu’s bankers won’t start marketing the initial public offering until after April 20, delaying the process from this week, according to the people, who asked not to be named because the decision is private.

The delay comes amid unprecedented scrutiny of high-frequency traders. “Flash Boys,” the Michael Lewis book released yesterday, argues that high-speed traders, Wall Street brokerages and exchanges have rigged the $23 trillion U.S. stock market. New York Attorney General Eric Schneiderman is examining privileges such as enhanced data feeds marketed to high-speed firms, while the Federal Bureau of Investigation is looking into whether those traders are breaking U.S. laws by acting on nonpublic information.

Virtu said it doesn’t believe it broke the law, “but we cannot predict the outcome of the inquiry.”

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.
TOWNHALL FINANCE DAILY

Get the best of Townhall Finance Daily delivered straight to your inbox

Follow Townhall Finance!