The Securities and Exchange Commission is considering new regulations to restrict the ability of algorithms to disrupt markets, Financial Times reports. It is planning fees on traders who place and cancel thousands of orders in a second to limit sending and cancelling thousands of orders per second, called “quote stuffing,” which some high-frequency firms are said to engage in. The Commodity Futures Trading Commission is also considering a new report that will place additional checks on traders, exchanges and clearing firms before trades are sent into the marketplace. The report recommended the adoption of “price collars” that prevented trades that were far away from the current market.
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