The main U.S. derivatives regulator is debating whether requiring a new registration for high-speed traders would give overseers better access to information collected by exchanges including the CME Group Inc.
High-speed trading in U.S. futures markets is being dominated by a small number of firms that should be forced to register with regulators to ensure adequate oversight, the Commodity Futures Trading Commission’s former chief economist will tell lawmakers.
High-frequency trading firms earn consistent profits at the expense of smaller and retail participants, according to a study co-authored by the top economist at the U.S. Commodity Futures Trading Commission.
The U.S. Securities and Exchange Commission is examining whether high-speed traders helped destabilize equity markets during the May 6 crash by repeatedly placing and canceling orders in an attempt to manipulate share prices, a person with direct knowledge of the inquiry said.
Exchanges and clearinghouses would be required to maintain adequate technology systems and report disruptions under a U.S. Securities and Exchange Commission plan for the first update of automation principles in 22 years.
After a four-month lobbying blitz led by firms including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Credit Suisse Group AG, there are signs that the fight over the fight over the Volcker rules may be shifting in Wall Street’s favor.