August 6, 2014 / 1:06 AM / 3 years ago

BATS close to settling high-speed trading case in U.S. -WSJ

Aug 5 (Reuters) - 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. (

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

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