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High-frequency trading leads to lawsuit against exchanges

The suit seeks class-action status and is poised to be a test of exchanges' legal immunity

Three big law firms have joined forces to pursue legal action against major US stock exchanges, claiming the exchanges handed unfair advantages to high-frequency traders to the detriment of regular investors.

The lawsuit, filed in the US District Court of the Southern District of New York, could test a cornerstone of US securities law: exchanges' immunity from lawsuits seeking damages.

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