Next year will be the year regulators bear their teeth.
back on 2011, it certainly seems that this is the year that
regulators finally flexed their muscles, concluding with the
FSA handing out a record £6m fine to a private investor
for market abuse but the question remains as to whether all
financial institutions have really got the message.
no doubt that today’s high speed trading culture
means that the growth in cross product, cross market trade
volumes, will lead to a continued debate around how the
industry is regulated in 2012. As the volume of trading shows
no sign of slowing, regulators will certainly continue to keep
a close eye on any financial institution that is deemed to be
manipulating the markets. This year we have seen institutions
that have failed to deploy the necessary measures to keep up
with regulatory changes in the market, despite the high profile
fines shelled out. For example, the CME Group hit a trading
firm with an $850,000 fine last month, for an algorithm that
went wild and resulted in large sums of oil futures being
purchased in quick succession.
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