Regulators overseas have proposed the stiffest rules yet aimed at curbing manipulative high-frequency trading, while U.S. regulators are still in the talking stages.
Last month, Hong Kong’s Securities and Futures Commission issued a proposal that would require trading algorithms to be tested and audited once a year.
On Monday, the Australian Securities and Investments Commission proposed a rule requiring brokers to gain direct control over all algorithm-based trades. Anyone breaking this or other of the country’s newly proposed market integrity rules would face a fine of up to $1.1 million.
Meanwhile, the U.K.’s Financial Services Authority is considering stiffer high-frequency rules around “operational risk issues,” according to Financial News.