NASDAQ acknowledges that flash orders are a scam

Reuters:

A Nasdaq spokeswoman said the exchange had no comment beyond a letter Greifeld sent to the SEC on Monday, in which he called for the elimination of "any order types or market structure policies that do not contribute to public price formation and market transparency."

Greifeld's letter listed "flash orders, internalized orders, enhanced liquidity providers, Block Talk orders, and dark pools," as order types that do not support price formation.

Nasdaq and rival BATS Exchange started on June 3 "flashing" buy and sell orders to exchange members, including big banks and hedge funds -- closely mirroring a service offered by alternative venue Direct Edge, which long offered the service to a smaller group of market participants, and was growing its market share at the exchanges' expense.

And they flashed the orders "reluctantly."

A reluctant flasher?

Only after they've been caught!