"Oh Bollox" as Eric Schneiderman turns up the heat on high frequency traders..
Will he be successful in his efforts or will this just be another load of regulatory chatter for the banks to filter through.
We'll need to watch and learn as the US Commodities Futures Trading Commission (CFTC) also recently said it was looking into regulating trading practices at firms, after publishing a report on the industry in September of last year.
On Tuesday, Mr Schneiderman raised concerns that firms specialising in high-frequency trading were benefitting from the special services provided by stock exchanges. He said the services allowed such firm to gain access to key data - including pricing, volume, trade and order confirmation - before other investors, allowing them to take positions in the market accordingly. "For instance, high-frequency traders look for arbitrage opportunities between and among the various exchanges, moving on price and order information before the rest of the market is even able to digest it," he said. He added that allowing firms to place their servers on location helped them "to continuously monitor all the exchanges for large incoming orders". "If a firm can detect a large order from an institutional investor - like a pension fund - it can instantaneously position itself on the other side of the trade, driving up the prices artificially," he said. "I am committed to cracking down on fundamentally unfair - and potentially illegal - arrangements that give elite groups of traders early access to market-moving information at the expense of the rest of the market."