IOSCO says HFT could affect short-term price setting on exchanges

The International Organization of Securities Commissions published a report delving into high-frequency trading and other trading practices that use advanced technology. IOSCO's technical committee suggested that national regulators look into HFT's effects on individual financial markets. "The very short term nature of many HFT strategies, coupled with high speed, high volume trading algorithms, could cause market prices to move away from fundamental values in the short term and impair the price discovery process that takes place on public and transparent markets," the report says.

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