I am personally wary of prescriptive regulation that attempts to identify an optimal trading speed, but I am receptive to more flexible, competitive solutions that could be adopted by trading venues.We will continue the disciplined, data-driven approach to market structure that has marked the last year.Maximum volatility was calculated the maximum difference between the daily high and daily low, divided by the closing price.
For example, which data feeds are used to execute and route orders.To facilitate this engagement, the SEC staff will populate our market structure website with summaries of key issues that provide a framework for further analysis, identifying areas that the staff is focused on and where public perspectives are essential.As a general matter, many market structure rules and industry practices were developed with manual markets in mind.Miller Specialist in Financial Economics Gary Shorter Specialist in Financial Economics.
SEC finalizes regulations on high-frequency tradersBut monitoring the execution quality and costs of orders can be difficult for even the most sophisticated investors, given the number of trading venues and order types available to brokers.Athena Capital Research, a high-frequency trading firm, was fined on Thursday for allegedly manipulating prices.
Over the past few years, regulators have increasingly focused on issues surrounding financial.Rule 606 of Regulation NMS currently requires some public disclosure of broker order routing practices, but it does not cover the large orders typically used by institutional investors.US SEC Brings First Enforcement Action For Market Manipulation Through High-Frequency Trading.WASHINGTON (MarketWatch) -- The Securities and Exchange Commission on Wednesday voted to propose a rule that would force high-speed trading firms to register. Such.Enhancing Market Transparency and Examining Trading Venue Regulation.
Transparency is one of the primary tools used by investors to protect their own interests, yet investors know very little about many trading venues that handle their orders.Another important concern raised by algorithmic trading is fairness for investors.When the limits are reached and persist, a temporary trading pause is triggered to facilitate a more deliberate price discovery process.One is their interconnectedness — the potential for one or more systems to malfunction and disrupt other systems, or to interact with other systems in unexpected ways.As you know, I instructed the SEC staff last fall to move forward on work to develop a pilot program to allow wider tick sizes for the stocks of smaller companies.We must test our assumptions about long-standing rules and market practices.
They are not allowed to transmit data to direct customers any sooner than they transmit data to the SIP, and the technology used for transmitting data to the SIP must be on a par with what is used for transmitting data to direct feeds.The controversial practice of high-frequency trading could face far greater scrutiny from the Securities and Exchange Commission under an array of proposals.WASHINGTON (MarketWatch) — The Securities and Exchange Commission on Thursday announced its third case in four days over alleged high-frequency trading abuses, this.U.S. securities regulators took the first steps toward ratcheting up oversight of rapid-fire trading, proposing to bring certain high-speed firms under.
SEC Targeting 10 Firms In High-Speed Trading Investigation
I am also recommending to the Commission the creation of a new Market Structure Advisory Committee of experts to review specific initiatives and rule proposals.A fourth area of concern is broker conflicts and how they are exacerbated or mitigated by different trading venues.
High-Frequency Trading, Order Types, And the Evolution of
High Frequency Trading, and Proof that the SEC Approach toAnd today, as we move forward in the next phase of our efforts to enhance our market structure, I am recommending additional measures to further promote market stability and fairness, enhance market transparency and disclosures, and build more effective markets for smaller companies.Addressing the issues of our current market structure demands a continuous and comprehensive review that integrates targeted enhancements with an expansive consideration of broader changes.High-Frequency Securities Trading: Overcoming Challenges to Stay Ahead.
With this information, users of the consolidated feeds would be able to better monitor the latency of those feeds and assess whether such feeds meet their trading and other requirements.Such obligations would be analogous to the ones that historically applied to the proprietary traders with time and place advantages on manual trading floors.These could include frequent batch auctions or other mechanisms designed to minimize speed advantages.The SEC is taking its time studying the market before issuing rules to curb speed traders.
New York Post. Flash Boys beware: SEC chills high-frequency trading.Dark trading venues generally reference the quoted prices displayed by the lit exchanges and do not publicly display quotes or otherwise provide pre-trade transparency of the prices at which they will execute orders.