HK regulator bears down on ‘algo’ traders

by The Compliance Exchange on July 27, 2012

Hong Kong’s market watchdog has proposed tackling the rapid growth of automated trading by requiring that algorithms are tested at least annually and that brokers have systems to prevent erroneous trades being spewed into the market.

The proposals, part of a consultation released this week, are a sign that Asian regulators are starting to bear down on automated trading in the wake of similar moves by their counterparts in Europe and the US.