Aug 5 BATS Global Markets Inc, the
second-largest U.S. exchange operator by volume, is in advanced
talks with regulators to settle allegations that it gave unfair
advantages to high-speed traders, the Wall Street Journal
reported, citing people familiar with the matter.
Any deal would mark the first regulatory action out of a
nearly three-year investigation by the U.S. Securities and
Exchange Commission into whether some exchanges offered certain
types of orders that gave sophisticated traders an edge over
other investors, the Journal said. (on.wsj.com/1mkqV28)
BATS and the SEC were not immediately available to comment.
High-frequency trading has also been under intense scrutiny,
following the release of Michael Lewis' book "Flash Boys: A Wall
Street Revolt," earlier this year.
The expected pact is a major reason why the exchange
operator forced out its former president, William O'Brien last
month, the Journal reported.
O'Brien left BATS less than six months after it merged with
rival Direct Edge, where he was the chief executive officer.
(Reporting by Avik Das in Bangalore; Editing by Lisa Shumaker)