It's the book that has shaken up Wall Street and Bay Street... Author of 'Flash Boys', Michael Lewis says the American stock market is rigged by high-frequency traders who have an unfair technological advantage. (Reuters/Lucas Jackson)
Author Michael Lewis explains in less then 1 minute how High-Frequency Trading makes stock markets more like rigged casinos:
"In the financial sector, concerns have been raised recently about a practice called "high-frequency trading." This practice, which consists of financial brokers and trading firms using advanced computer algorithms and ultra-high speed data networks to execute trades, has rightly received scrutiny from regulators. I can confirm that we at the Justice Department are investigating this practice to determine whether it violates insider trading laws."US Attorney General Eric Holder
Last Friday, US Attorney General Eric Holder zeroed in on a kind of trading that is generating a lot of controversy. High-Frequency Trading -- the ability to place a trade many, many, many times faster than the blink of an eye -- has become a fixture of stock markets all over the world.
"I think this is a person who may have walked into American finance and changed it forever. This man - Brad Katsuyama - is going to be a historic figure. And thank God for him." - Michael Lewis on Canadian RBC Wall St. trader, Brad Katsuyama.
• Brad Katsuyama says his aim is to make trading fair -- CBC News
In his controversial new book, Flash Boys: A Wall Street Revolt, best-selling author Michael Lewis tells the story of a Canadian trader who questioned the morality of High-Frequency Trading and decided to fight it.
Michael Lewis joined us from Seattle, Washington.
Brad Katsuyama wasn't available to speak to us today but we're still hoping to be able to speak with him in the days to come.
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This segment was produced by The Current's Howard Goldenthal.