The Securities and Exchange Commission (SEC) is proposing that the identity of broker-dealers is revealed when high-frequency trades are made, insiders have said.
Two unnamed sources told the Financial Times that the SEC is concerned about the current way in which high-frequency trading, which seeks out pricing and other discrepancies in markets through the use of computer algorithms, takes place.
At the moment, the identity of broker-dealers carrying out such business is not shown up in audited trails – making it a difficult sector to regulate.
The new proposals would aim to improve this situation as part of wider reforms including the implementation of risk management controls.
John Nester, SEC spokesman, did not confirm the precise details of the regulators plans but said: "Staff expect to make a recommendation in the very near future."
Last month, the new Financial Rules Bill proposed that all large hedge funds – those with assets of more than $100 million – must be registered with the SEC.
No comments:
Post a Comment