Critics say "flash" orders for stocks, which route trades through private-liquidity pools and then send them to other exchanges, create two classes of investors. Sen. Charles Schumer, D-N.Y., has told the Securities and Exchange Commission that if the agency does not limit such orders, he will. "If the SEC fails to curb this practice, I plan to introduce legislation in the U.S. Senate to prohibit the use of flash orders in connection with optional pre-routing programs in order to ensure that trading in U.S. public capital markets is fair and transparent for all market participants," Schumer wrote. William O'Brien, CEO of the electronic share-trading network Direct Edge, said banning such practices would "perpetuate a two-tier market."
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