SIP vs. Direct Feeds Latency – What are the Rules?
Michael Lewis’ book, Flash Boys, reinvigorated an old debate – latency. Some market participants receive quote and last trade information faster than others. Some market structure observers are asserting that the SEC is not enforcing Regulation NMS—that data “receipt” latency that exists between the SIP and direct feeds is against the Securities Act Amendments of 1975 and Regulation NMS.