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Regulators To Scan Firms’ Algo Strategies

U.S. securities regulators are requesting high-frequency trading firms to provide details of their trading strategies.

U.S. securities regulators are requesting high-frequency trading firms to provide details of their trading strategies, Reuters reports. The Financial Industry Regulatory Authority needs proprietary code and algorithm parameters as part of its investigations into suspicious market activity.

The Securities and Exchange Commission (SEC) has also started seeking proprietary algorithmic trading data from trading companies, exercising its authority to study whether financial firms are complying with U.S. regulations. The regulator requires the data to know if hedge funds are actually using the strategies they market to investors and also to ensure that algorithms are not being used to manipulate the market.

Click here for the story from Reuters.

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