Trickery in High-Frequency Trading: Part 4

Trickery in High-Frequency Trading: Part 4

Back in February, we posted an update on the high frequency trading litigation, covering the motion for class certification recently filed in the multi-district litigation. Today, we’re here with a quick update on a recent decision, this time on Defendant’s Rule 56 motion for summary judgment on the ground that Plaintiffs lack Article III standing.  Defendants simultaneously moved to exclude the expert testimony on which Plaintiffs relied to prove standing. The court granted both motions, stating that “Plaintiffs have not put forward evidence from which a jury could reasonably conclude they have suffered an injury in fact that is fairly traceable to the Exchanges’ sale of these products and services[.]” Continue reading Trickery in High-Frequency Trading: Part 4

Trickery in High Frequency Trading: Part 3

Trickery in High Frequency Trading: Part 3

It has been a long while since we have updated this particular blog series, but we’re back again with a look at some of the more recent developments in the set of related litigations targeting certain practices adopted by several stock exchanges (the “Exchange Defendants”) which increase the speed at which high-frequency traders (“HFTs”) can execute their trades. For a full refresher, I’d encourage you to take a peek at our two previous posts on this topic, but let it suffice to say here that the investor plaintiffs believe that the Exchange Defendants – motivated by the increased fees associated with the rise of high-frequency trading – created products and services that allowed the HFT firms to prey on other investors via allegedly manipulative trading schemes. Continue reading Trickery in High Frequency Trading: Part 3

High Frequency Trading: Trickery Take Two

High Frequency Trading: Trickery Take Two

The December 2017 decision from the Second Circuit held that the Exchanges were not entitled to absolute immunity with respect to the securities fraud claims, thus vacating the lower court’s dismissal. Defendant’s motion to dismiss the SCAC was accordingly limited to grounds for dismissal not yet addressed—and much pithier than earlier briefings, as a result. Continue reading High Frequency Trading: Trickery Take Two