CFTC: Alameda receives trade orders on FTX milliseconds faster than other API users

According to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC), SBF’s Alameda Research has a speed advantage when executing orders with FTX, according to Bloomberg. These advantages were not publicly disclosed and yielded a "significant speed advantage," the CFTC said. According to the CFTC, “Alameda’s trade orders are milliseconds faster than those of other API users. In the field of high-frequency trading, this is a significant time advantage.” In addition, FTX also allows Alameda to avoid automation such as verifying available funds before executing trades. step. If other customers have placed orders at the same time, these checks are performed sequentially so that each transaction can be confirmed as valid, but this rule does not apply to Alameda.