News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Industry poised for changes as regulators take action

Both the SEC and the CFTC have reviewed mechanisms and practices that are characteristic of HFT firms, but In Europe the regulatory response has been slower burning

Regulators have kept a close eye on high-frequency trading ever since the flash crash of May 2010, when irregular trading activity caused the Dow Jones Industrial Average to plummet nearly 1000 basis points in less than 20 minutes.

The incident, which momentarily knocked hundreds of billions of dollars off the US stock markets, sparked a furious debate over the risks of the practice.

WSJ Logo