SEC might require B-Ds to monitor algorithmic trading orders

12/10/2010 | InvestmentNews (free registration)

The Securities and Exchange Commission is attempting to prevent a repeat of the May 6 "flash crash." SEC officials might require broker-dealers to monitor trade orders made by computer algorithms. David Schillman, associate director of the SEC Division of Trading and Markets, said the agency is looking into systems for vetting algorithms. "We are looking to protect against the most extreme incidents," he said.

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