Anyone really interested in this subject needs to read the finer...

Anyone really interested in this subject needs to read the finer details that Nanex refers to -

"Finally, we think a solution exists without new rules and regulations: if only the SEC would enforce, or at the very least provide guidance to, existing rules and regulations. "

http://www.nanex.net/FlashCrash/FlashCrashAnalysis_Laws.html

"Stated another way, adopted Rule 603(a) prohibits an SRO or broker-dealer from transmitting data to a vendor or user any sooner than it transmits the data to a Network processor."

++> the bottom bit is interesting

Securities Exchange Act of 1934, Section 9 -- Manipulation of Security Prices

In reviewing these regulations:

1) Delivering market data through premium products ahead of transmission to a Network processor would seem to violate Rules 603(a) and 603(a)(2) of Regulation NMS.

2) Placing orders for which one has no intent to execute would seem to violate Section 9(a)(1)(A) of the Securities Exchange Act.