Flash trading not an option for UAE markets

UAE exchanges are not likely to adopt the controversial practice of flash trading, a financial expert told Gulf News.

Flash trading is a computerised technique used by stock traders to detect orders milliseconds after they are placed but before other market participants are able to react. It is subject to a ban at least in the United States, the head of the Securities and Exchange Commission (SEC), Mary Schapiro, announced recently.

With a very slight advance notice of market sentiment, usually 30 milliseconds, traders who operate extremely powerful computers can conduct an ultra-quick statistical analysis of the market movement and trade ahead of others.