The corporate regulator says fears about high-frequency traders in Australia appear to be largely exaggerated, but some trading practices are forms of market manipulation.
The Australian Securities and Investments Commission has released its much anticipated report on the impact of high-frequency trading and dark pools on Australia’s financial market. It comes after two taskforces were set up in June 2012 to investigate concerns that high-speed traders and dark liquidity were impairing market integrity.
“‘Many issues can be dealt with by existing regulations and there has been a marked change in the professional traders’ behaviour during the course of the ASIC study,” said ASIC Deputy Chairman Belinda Gibson.
“Some of the commonly held negative perceptions about high-frequency trading are not supported by our analysis of Australian markets.”