The SEC Is Finally Cracking Down on High-Speed Trading – Gizmodo

The SEC Is Finally Cracking Down on High-Speed Trading – Gizmodo

Today, Securities and Exchange Commission Chairperson Mary Jo White announced a whole slew of initiatives designed to tighten the leash on computerized high speed trading in the stock market. If you’re playing the stock market and you’re not a supercomputer, that’s very good news.

As The Wall Street Journal reports, the new rules would bring big changes to the world of high-frequency traders, a group that currently accounts for more than half of the volume of stock market trades. Under the proposals, formerly unregulated private trading outfits would be roped into a more tightly controlled category of traders; the tech they use would be more closely scrutinized; and new rules would safeguard against the extremely swift short-term trading moves that heighten market volatility.

It’s the most direct response yet to concerns over high-speed trading, which uses military-grade tech to transfer data at ludicrous speeds, creating an advantage that can’t be accessed by regular human-powered trading.

Rooftop Lasers Are the Next Big Thing For High-Speed TradingRooftop Lasers Are the Next Big Thing For High-Speed TradingRooftop Lasers Are the Next Big Thing For High-…

Eventually, they could end up on your roof, beaming trading data across the sky: Lasers, originally … Read moreRead on

High-Speed Traders Beat Laws of Physics, Steal 5 Milliseconds From FedHigh-Speed Traders Beat Laws of Physics, Steal 5 Milliseconds From FedHigh-Speed Traders Beat Laws of Physics, Steal …

A week ago, the Federal Reserve announced something or another about bonds, a move that sent the… Read moreRead on

WSJ says the SEC will work with stock exchanges to minimize speed differences between the public data feed and the high-speed direct feeds used by high-frequency firms. Market watchers fear that these private feeds let high-speed firms react to market moves well before investors watching the public feed catch wind.

Earlier this month, New York State Attorney General Eric Schneiderman announced a state-level crackdown on high-frequency trading tech. Now that the SEC is involved, it seems the overseers are finally ready to reign in unruly high-speed traders. For the next step, the SEC will launch a committee to examine the proposals, with potential approval coming after a thorough review—and, assumedly, a lot of push-back from the trading groups that profit enormously from this tech-driven uber-trading. [U.S. Securities and Exchange Commission via WSJ]

How High Speed Traders Use Microwaves to Make MoneyHow High Speed Traders Use Microwaves to Make MoneyHow High Speed Traders Use Microwaves to Make M…

The days of traders shouting orders on the New York Stock Exchange’s floor may soon be over. A new breed of investing, known as High Frequency… Read more

NY Is Cracking Down on High Frequency Trading Tech That Runs the NYSENY Is Cracking Down on High Frequency Trading Tech That Runs the NYSENY Is Cracking Down on High Frequency Trading T…

New York Attorney General Eric Schneiderman vowed today to crack down on the technology that gives high frequency traders an unfair advantage in the… Read more

View this article – 

The SEC Is Finally Cracking Down on High-Speed Trading – Gizmodo

Share this post