The US bank is the latest authority to have spoken out on high-speed traders
The Federal Reserve Bank of Chicago has proposed nine
changes to limit unfair high frequency trading (HFT) practices
and ensure fair, transparent markets.
The Chicago Fed recommendations include breaking up the
trading session into half-second periods and ensuring each
trading algorithm has a unique identifier.
John McPartland, a senior policy advisor for the Fed, draws
on the experience of Germany’s HFT act where the
financial supervisory authority has adopted policies to curb
excessive use of exchange systems.
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