S.E.C. to Seek Ban on Flash Orders, Schumer Says

The New York Times reports:

The head of the Securities and Exchange Commission will seek to stop a trading technique that enables some large banks and hedge funds to peek at investors’ stock orders before they are sent to the broader marketplace, Senator Charles E. Schumer said on Tuesday.

Mr. Schumer, Democrat of New York, said in a statement that he was personally promised the regulator would seek to prohibit the technique, known as flash trading or flash orders, by the S.E.C. chairwoman, Mary Schapiro.