." >> the first places orders were lands was the bats exchange across the river in weehawken, new jerseyency traders were lying there in wait. >> oh my god. that's how i'm being front runned. i'm being front runned because my signals gets to the ek change first and beat me to all the other exchanges. >> it only took a tiny fraction of a second for brad's trade to reach the next exchanges on the network. but the high-speed traders were able to jump in front of him by, buy the same stock and drive the price up before his order arrived. producing a small profit of just one or two pennies. but it was happening to everyone's trades millions of times a day. >> brad's story is told in the new book "flash boys: a wall street revolt by michael lewis." please welcome brad. brad, this story has just blown up all over america. people are, i think, up in arms and concerned. is wall street rigged? that's the big question. i think the bigger question is, how does this effect just an ordinary investor? because there are some saying there's no big deal here, nothing to see, move along. doesn't really hur

weehawken, see caucus, carterrette, and -- in new jersey, and you go in them, which what you see is rows and rows of black boxes. one set of the black boxes if the exchange itself, called the matching engine. where buyers and sellers are connected. where price of the stock should be because of the buyer and the seller agrees to meet at that price. then you have around that matching engine the boxes of the high-frequency traders who pay $50,000 a month, $100,000 a month, whatever it is to connect a line directly into the box to get information about what is happening on the exchange before everybody else. >> host: what is front running you talk about in "flash boys"? >> guest: front running is -- the idea is almost like tickets. imagine a ticket and a scalper. one who figures out the show will be sold out, runs out, buys a ticket at the box office price and sells them at doubling the price to people who walked up to see the show. in the stock market, what is happening often is that traders with faster machines are able to anticipate orders to buy and sell stock from investors, and every k