Pension Funds Join High Frequency Trading Lawsuit

A number of pension funds have joined the city of Providence, Rhode Island, in suing major stock exchanges for allegedly favoring high-frequency traders over other investors. Providence and the pension funds are seeking class action status for their lawsuit, filed in the Federal District Court in Manhattan, against the New York Stock Exchange, Nasdaq, BATS Global Markets, and Barclays. The practice of high-frequency trading – using computer algorithms to buy and sell shares in milliseconds – has seen increased scrutiny over the last few months from U.S. regulators and Congress, and the New York State attorney general has filed another suit against Barclays for its private stock trading venue, known as a dark pool.