A U.S. Securities and Exchange Commission ban on flash trades is imminent, a senior lawmaker said in a statement on Tuesday.
Democratic U.S. Senator Charles Schumer said SEC Chairman Mary Schapiro personally assured him that the agency plans to ban the practice of so-called 'flash trading' that gives advance knowledge of stock orders to certain traders.
We salute the SEC for moving forward with this ban that will restore integrity to the markets, Schumer said.
The senator said Schapiro told him in a phone call late on Monday that the ban would occur as part of a larger look at dark pools and high-frequency trading.
Schumer said the call came in response to a letter he sent last month saying that the SEC should eliminate the practice or else he would offer legislation to do so.