GSA Complains About High-Frequency Currency Penalty

Jan 23 2013 | 12:14pm ET

Hedge fund GSA Capital Partners is none too pleased with a currency-trading platform it uses.

The London-based firm has stopped posting passive orders on Thomson Reuters' Reuters Matching platform, protesting what it said was a slap on the wrist for another user of the system. The skirmish boils down to another battle over high-frequency trading; GSA and other currency traders worry that high-frequency users are abusing the platform, and the hedge fund lays the blame squarely at Thomson Reuters' feet.

At issue is Thomson Reuters' brief suspension of Lucid Markets late last year. Lucid used multiple servers to get trading data ahead of competitors, which is against the rules, according to Thomson Reuters. Lucid said it broke no rules.

Either way, GSA isn't happy. "Thomson Reuters's failure to sanction the offender publicly has damaged confidence in the platform and in Thomson Reuters's ability to provide a level playing field for all participants," GSA said.

The fight puts Thomson Reuters in a tough place: between two of its biggest customers. GSA traded a notional US$15 trillion in currencies in 2011, The Wall Street Journal reports, while Lucid traded US$13.4 trillion that year.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat