CFTC: FTX's system provides a significant speed advantage for Alameda trading

ChainCatcher message, according to a complaint filed with the Commodity Futures Trading Commission (CFTC), Alameda Research, owned by SBF, had a speed advantage when executing orders on FTX.

The CFTC stated that these advantages were not publicly disclosed and resulted in a "significant speed advantage." "Alameda's trading instructions were a few milliseconds faster than those of other API users. In high-frequency trading, this is a crucial time advantage."

Additionally, FTX allowed Alameda to bypass automated steps such as verifying available funds before executing trades. If other customers placed orders simultaneously, these checks were conducted sequentially to confirm the feasibility of each trade, but this rule did not apply to Alameda. (Source link)