In this article, Jenner & Block Partner Timothy A. Karpoff and Associate Michael H. Margolis examine equity market structure in light of the recent book Flash Boys: A Wall Street Revolt. The authors explain that Michael Lewis’ book argues that high frequency traders have created a rigged stock market. They discuss why they disagree with Mr. Lewis’ thesis and explore other issues that require reform: 1. bespoke order types; 2. maker-taker pricing; 3. arbitraging data feeds; and 4. risk controls.
