Regulator seeks inquiry of super-fast trading

Regulator seeks inquiry of super-fast trading

Traders using super high-speed computers executed as many as 500 trades per second at the daily openings and closings of commodity markets during the past year, a federal regulator said Monday in a call for expanded examination of the trading tactic.

Speaking at an electronic-trading conference in Chicago, Bart Chilton, a commissioner on the Commodity Futures Trading Commission, said the high-frequency traders may be conducting so-called “wash” trades. Traders buy and sell securities almost simultaneously in a no-risk transaction that makes it appears as though there’s more market action than there really is.

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This entry was posted in Breaking News, Dark Pools, Finance, High Frequency Trading, Regulatory Updates and tagged , , , , , , , , . Bookmark the permalink.

One Response to Regulator seeks inquiry of super-fast trading

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