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High-Frequency Senate Hearings: Don’t expect any policy action yet

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The "Flash Boys" take the stage on Capitol Hill today.  

A Senate panel, the Permanent Subcommittee on Investigations, kicked off a hearing today about whether high-frequency trading gives an advantage to some investors and traders over others, and whether it hurts investor confidence in the markets.

Senator Carl Levin, a Michigan Democrat and chairman of the panel said in a statement, “The conflicts of interest we have examined threaten to damage investors and to erode the trust and confidence on which our free markets depend.”

Author Michael Lewis, whose book "Flash Boys" was able to generate attention because he said the market was “rigged” will be questioned by the senate panel. So will Brad Katsuyama, the so-called hero of book who is the president and CEO of trading venue IEX Group. The line-up also includes stock exchange executives from the NYSE Group and BATS, as well as officials from mutual fund company Vanguard and brokerage firm TD Ameritrade.

Yahoo Finance Senior Columnist Michael Santoli does not expect the hearings to result in any big policy changes just yet, but he does expect some changes down the road on more technical factors, like order types and exchange fees.

A Senate Banking panel will take up the issue of high-frequency trading tomorrow.

We want to know what you think about high-frequency trading and insider trading. "Flash Boys" author Michael Lewis has said the markets are rigged. Do you think the markets are rigged? Vote in our poll, or leave a comment below or on Twitter.