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Monday, March 18, 2024
March 18, 2024

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Regulators propose new rules for high-speed traders

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NEW YORK — Regulators are proposing new procedures to monitor high-speed trading more closely in response to wild market swings brought on by a series of technical breakdowns.

More than 70 percent of all trading today is automated, the Commodity Futures Trading Commission said as it voted unanimously in favor of new registration standards for high-speed traders.

The systems use algorithms to spot variances in market data, allowing trading firms to deliver buy and sell orders in milliseconds.

That technology has led to a number of high-profile glitches, including one this summer that shut down the New York Stock Exchange for almost half a day.

The CFTC proposals would require some traders to register with the commission, specifically those “engaged in algorithmic trading through direct electronic access” to major U.S. markets. The new rules are meant to foster greater transparency, and they are open for a 90-day public comment period.

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