Flash Boys: A Wall Street Revolt - It is based on a real event, 2008 financial crash
Summary
"Flash Boys: A Wall Street Revolt" is a non-fiction book written by Michael Lewis and published in 2014. The book explores the world of high-frequency trading (HFT) and its impact on the fairness and integrity of the stock market.
The story revolves around a group of Wall Street outsiders who uncover the manipulative practices of HFT firms. These firms use sophisticated algorithms and high-speed technology to gain unfair advantages in trading. They exploit tiny delays in the transmission of stock prices and execute trades faster than regular investors, allowing them to front-run orders and make profits at the expense of others.
The main protagonist of the book is Brad Katsuyama, a former trader at the Royal Bank of Canada (RBC). Katsuyama discovers that the stock market is rigged and sets out to create a fairer trading platform for investors. He establishes a new stock exchange called IEX (Investors' Exchange) that aims to level the playing field by eliminating the advantages of HFT.
Throughout the book, Lewis exposes the questionable practices of high-frequency traders and the complicity of traditional exchanges, brokers, and regulators in perpetuating this unfair system. He sheds light on the complex and obscure world of Wall Street and reveals how HFT firms profit at the expense of ordinary investors.
"Flash Boys" not only delves into the technical aspects of high-frequency trading but also humanizes the individuals affected by these practices. Lewis emphasizes the importance of trust, fairness, and transparency in the financial system, advocating for reforms to protect investors and restore confidence in the markets.
Overall, "Flash Boys: A Wall Street Revolt" serves as a wake-up call, exposing the dark side of high-frequency trading and sparking a broader discussion about the need for reforms in the financial industry. It sheds light on the behind-the-scenes operations of Wall Street and the efforts of a group of individuals who aim to bring about positive change in the face of powerful and entrenched interests.