ASIC introducing rule changes for automated trading.

Andrew White in the Australian today foreshadowed the release this week of rules for automated share trading.

ASIC  has undertaken a review of issues of concern to them as regulator:

  • the risk of trading aberrations from  mal-functioning trading algorithms,
  • the potential for market manipulation in HFT trading,
  • the growth of off-market, unregulated trading “pools”.

The rule changes to be announced this week, will introduce certification and direct oversight of trading system filters, and controls.

Additional inquiries into HFT and “dark pool” trading will not report until early next year.

Categories: Market Regulation


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