High-Frequency Trading Gets a Working Definition

Summary


WASHINGTON (Reuters) - The fact that no one has comprehensively defined high-frequency trading has not stopped it from dominating debates over the fairness and stability of today's electronic marketplace.

Such computer-generated, rapid-fire trading has taken hold on exchanges globally, dominating volumes and making it faster, cheaper and easier to trade than ever before. Yet the strategies driving "HFT" and the unintended effects it has on securities prices are contentious and little understood, leading regulators to consider new rules to rein it in.

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Extract


High-Frequency Trading Gets a Working Definition

So this week, a U.S. Commodity Futures Trading Commission regulator pitched a seven-point definition meant to serve as a starting poin...

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