Berman noted that the agency has a new surveillance system, known as Midas, that collects price data from all U.S. exchanges and that helps the SEC evaluate practices such as co-location, in which traders cut trading times by placing computers inside an exchange, and proprietary feeds, or streams of data send to clients faster than to public sources. The agency can’t be both ignorant of market behavior and have access to such expansive data.
“One of those statements has to be wrong,” Berman said. “Those both can’t be true at the same time.”
‘Enforcement 40’ for 2020
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedIn