60 Minutes Report: Is the Stock Market Rigged?

http://www.youtube.com/watch?v=BweADB78tBY

Dear Commons Community,

CBS’s 60 Minutes had a segment on Sunday with the author, Michael Lewis, whose new book posits that the U.S. stock market is rigged, with elite traders buying access to a high-speed network.  This access allows them to figure out what you’ve just ordered, order it first, then raise the price before your order is complete.  And according to Michael Lewis, author of a new book about high-frequency trading called “Flash Boys,” this form of “front running” is completely legal.

The insiders are able to move faster than you,” Lewis said on “60 Minutes” on Sunday night. “They’re able to see your order and play it against other orders in ways that you don’t understand. They’re able to front run your order.”

The advantage adds up to less than a second — in some cases a fraction of a millisecond — but thanks to the powerful computers masterminding the trades, it’s enough time to make serious money.

See the full segment above.

Tony

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