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Why can exchanges exploit fair and orderly markets .

I am constantly asked about market abuse and manipulation within our markets and how best to combat these undesirable threats . Since entering the trading arena in 1982 I have witnessed a number of abuses BUT have always believed that exchanges have monitored a fair and orderly market place ;however  I now struggle to accept this especially with EUREX ENHANCED ORDER BOOK INTERFACE .

             The opportunities for certain traders to abuse this service are great ; this interface has the ability to disclose  every limit order ; stop order ; part fill and cancelled orders and therefore a perfect dream for HFT . This function perfectly allows front running ; squeezing and stop hunting  under the very gaze of a senior exchange ; this seriously hampers the retail trader and probably answers why he always feels short changed ! 

     Exchanges have to convince regulators that they provide "fair and orderly markets" to gain their R.I.E status  and this interface basically allows a two tier market which to me sounds ilegal . E.O.B.I. subscribers get alll matching/order book event messages before anyone else .Therefore sadly every order entered can be intercepted and overtaken and again every market order made to pay worse price  . The Clayton rule on Manipulation i believed covered this ; however Exchanges and EUREX have different ideas , they obviously like rats in the granary  . 

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