Fidelity Responds To Flash-Critical Customer
The following response is what Fidelity submitted when a concerned customer demanded that none of his orders be flashed to other market participants.
"You requested that we verify in writing that the equity trades you place in your Fidelity brokerage accounts are never subject to "Flash orders." I have reviewed your request and determined that we are unable to verify this information, since flash orders involve the activity of stock exchanges to which orders are routed, not the brokerage firms which receive the orders from their clients."
To their credit, Fidelity is right. To Citadel's benefit, and Mary Schapiro's chagrin, all her claims that retail customers can toggle whether their orders are Flashed or not, have been refuted. In other words, even as Flash is facing a death squad, the HFT machines keep on seeing major order flow ahead of non-Flash enabled participants, courtesy of the exchanges that have still not voluntarily removed Flash, such as Direct Edge and others.
Dear Mary Schapiro: please get at least one thing in your "career" right.