From Wealth Management.com
“ 'I don’t think that sort of stuff is going on anymore', said Richard Gates, co-founder of TFS Capital.
The Westchester, Pennsylvania trader who first went public with proof he was being ripped off by high-frequency traders, and whose story would play a minor role in Michael Lewis’ recent bestseller Flash Boys, now says retail investors and advisors have nothing to fear from so-called “latency arbitrage” strategies.
“I don’t think that sort of stuff is going on anymore, “ said Richard Gates, co-founder of TFS Capital, to a group of financial advisors gathered at the Investment Management Consultants Association’s annual conference Tuesday. “I think the markets are stronger than ever. A lot of these issues have been resolved.”
Gates explained to the gathering how, in 2008 and 2009, he discovered his stock transactions were not getting the best price available in the market, information ostensibly guaranteed by the numerous exchanges, like NASDAQ and the NYSE, who bring information on buy and sell orders together in a National Best Bid Offer data feed in order to settle on the fairest price to both sides of the transaction.”
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