WASHINGTON, D.C.—A ranking U.S. Securities and Exchange Commission
official indicated last Friday the SEC is weighing whether compulsory FINRA
registration for High Frequency Trading (HFT) firms is an appropriate measure
to protect the investing public. Outgoing acting director of the SEC's Trading
and Markets Division, John Ramsay, said Friday during the Practising Law
Institute's annual "SEC Speaks" conference, it "is something we
are looking at carefully."
HFT has been a focus of regulatory debate since the May 6, 2010 "Flash Crash," during which the Dow Jones Industrial Average plummeted over 700 points in mere minutes. It was later determine HFT was not the crash catalyst, but the en masse "running for the exits" by HFT traders exacerbated the plunge as liquidity evaporated. Read the full Reuters coverage here.
Read an article by Ed Pekarek and Brody Tice about HFT "Quote Stuffing" @ the NYSBA Securities Litigation and Arbitration Blog.
HFT has been a focus of regulatory debate since the May 6, 2010 "Flash Crash," during which the Dow Jones Industrial Average plummeted over 700 points in mere minutes. It was later determine HFT was not the crash catalyst, but the en masse "running for the exits" by HFT traders exacerbated the plunge as liquidity evaporated. Read the full Reuters coverage here.
Read an article by Ed Pekarek and Brody Tice about HFT "Quote Stuffing" @ the NYSBA Securities Litigation and Arbitration Blog.
