Dark Pool Investigations and High-Frequency Trading Litigation

Dark pool investigations and litigation of high-frequency trading (HFT) have led to a wave of recent complaints against exchanges, brokerages, and high-frequency trading firms alleging violations of the Securities Exchange Act. The complex interplay of an enormous number of trades happening in a short period of time between numerous market participants spread across disparate trading venues presents challenges for investigation and analysis.

Economists at The Brattle Group have experience in investigations, litigation, and enforcement actions involving the analysis of algorithmic trading strategies, alleged disruptive practices, and manipulation claims related to a variety of instruments in securities and commodities markets. Our experts also have experience working with “big data,” and our terabyte-scale data storage solutions provide for massive parallel processing, which is often required for the effective analysis of dark pool and high-frequency trading activity.

We maintain affiliations with some of the leading international academics and experts on the issue of high-frequency trading, including the Chair of the Financial Regulatory Authority Economic Advisory Committee, a Nobel Prize winning economist, and former chief economists at the U.S. Securities and Exchange Commission.

Our related experience includes:

  • Evaluating algorithmic trading strategies to detect alleged market disruption.
  • Examining trading data to detect non-economic trading and market manipulation.
  • Analyzing enormous quantities of financial trading data.
  • Studying market microstructure to assess the impact of trading on market prices.
  • Understanding relevant commercial practices including payments for order flow and the interaction between order types, routing, and execution practices.

Borucki 113
Ms. Borucki is a financial economist with experience providing advice and developing expert testimony on the application of corporate finance and economics in both litigation and strategic engagements. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Webrichgoldberg img 4749
Dr. Goldberg specializes in complex litigation in which careful analysis and modeling of economic, business, or financial data is critical. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Hinton 035
Mr. Hinton has over 20 years of experience directing projects and providing expert testimony in securities litigation and enforcement. Mr. Hinton is an expert on topics in finance, economics, and valuation. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Voetmann 055
Dr. Voetmann focuses on cases that involve complex economic and financial issues. He has worked with clients and experts on securities cases and valuation disputes related to capital markets and financial institutions. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Senior Associates
Kumar 066
Senior Associate
Dr. Kumar is an economist with expertise in corporate finance issues including business valuation, tax, and transfer pricing. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Equity Market Microstructure and the Challenges of Regulating HFT
January 16, 2015
Published in Financier Worldwide
High-Frequency Trading Litigation Presents Complex Issues for Experts
June 2014
Zachary Ziliak, Pavitra Kumar, and Torben Voetmann
Published by The Brattle Group, Inc. Published on Law360
Computerized and High-Frequency Trading
May 2014
Published in The Financial Review, Vol. 49, No. 2
Trading at the Speed of Light: The Impact of High-Frequency Trading on Market Performance, Regulatory Oversight, and Securities Litigation
Published by The Brattle Group, Inc.