FIA Issues Statement Regarding High-Frequency Trading Book by Michael Lewis

The Futures Industry Association ("FIA") Principal Traders Group issued a statement in anticipation of the release of Flash Boys, a book by Michael Lewis that describes some of the recent developments in electronic trading and market structure in the U.S. equity markets.FIA stated that it hopes "the book will draw attention to the dramatic changes in trading technology that have occurred in U.S. equity markets as well many other markets worldwide."

According to FIA, the use of high-frequency trading tools has contributed to substantial improvements in market quality that have benefited investors; however, the rapid pace of change in the equity markets due to high-frequency trading has also caused confusion and suspicion among investors, and FIA supports efforts to improve the understanding of modern markets.

FIA explained that the book discusses a newly formed trading venue called IEX Group, and stated that FIA welcomes such experimentation in market design, though "any trading venue will have difficulty meeting the needs of investors without the liquidity and price discovery provided by professional traders." Going forward, FIA urged regulators to conduct a thorough examination of all aspects of market structure based on empirical data and analysis, and applauded the SEC's MIDAS initiative.

See: FIA Statement.