All would have been fine and well

 I've been doing this since '86. It wasn't really until 2008 and 2009 that we noticed the explosion of quotes, of price changes for stock, without an a panying explosion of actual trading. Normally, you'd see the price change once or twice a second -- now, a hundred times, or a thousand times. Just a little quick calculation on the calculator, and a knowledge of the speed of light, tells you, 'Hey, wait a minute, you guys are changing the prices faster than anyone can physically access them,New Released Mercedes Benz AK500+ Key Programmer with EIS SKC Calculator so why are you blasting that all over the country on the consolidated feed?"This is, in your view at least, the result of Regulation NMS issued in 2007 by the Securities and Exchange Commission.

With Reg NMS, it essentially took x amount of available stock at one place, and made it one tenth of that x at ten different places. The regulations, as they were written and they were understood, were that routing of orders for stock would all be based on what they called a SIP, a security information processor. The SIP would tell each exchange if there were a better price somewhere else. If so, the order had to route it to that other exchange, which guarantees you get the best price available on any of the exchanges. Where does the best price e from? It es from the SIP, also known as the consolidated feed. It's really what goes along the bottom of CNBC or financial sites.

All would have been fine and well, or at least, it would be a lot better than it is today, if they actually used the SIP. Instead, the exchanges created these direct feed connections, which is a way to get the prices faster, which is actually illegal under Reg NMS. That's the big issue I have. Reg NMS is very clear: exchanges can't give this market data to anyone else in any other way faster than they give it to the SIP.TOP3000 Universal Programmer High-frequency traders are taking advantage of the exchanges illegally giving them this data sooner. If anybody is going to get arrested or busted or fined over this, it probably won't be the high-frequency traders. It's going to be the exchanges. That's what the NYSE got fined $5 million for in 2012. The SIP is the core of that piece of regulation. Without the SIP, all of Reg NMS falls apart.