Flash trades being dropped next month by a couple exchanges

From today's Marketplace show:

The Nasdaq and the electronic exchange BATS say they'll both stop offering flash orders as of next month.

Flash trades, or flash orders are computerized "looks" at the market for securities milliseconds before the "public" views them. Doesn't sound like a lot of time, but the fact ~50% of daily trading is computer generated, milliseconds gives an unfair advantage to unknown players.

An unfair advantage to unknown players = another unknown level of complexity to maintaining stable markets, investor confidence & fair price discovery = another level of unnecessary enormous risk to the entire market.

Those reading this probably can't "move the market", but the big money who knows flash trading exists, uses it, & uses computer generated trading can & has moved the market. Remember Fall 2008 with the wild swings? Chance are it will happen again.

Previously here.