ABSTRACT

High-Frequency Trading: Background, Concerns, and Regulatory Developments [June 19, 2014]   [open pdf - 524KB]

"High-frequency trading (HFT) is a broad term without a precise legal or regulatory definition. It is used to describe what many characterize as a subset of algorithmic trading that involves very rapid placement of orders, in the realm of tiny fractions of a second. Regulators have been scrutinizing HFT practices for years, but public concern about this form of trading intensified following the April 2014 publication of a book by author Michael Lewis. The Federal Bureau of Investigation (FBI), Department of Justice (DOJ), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), the Office of the New York Attorney General, and the Massachusetts Secretary of Commerce have begun HFT-related probes. […] This report provides an overview of HFT in the equities and derivatives markets regulated by the SEC and the CFTC. It also examines the Flash Crash of 2010 and the role that HFT may have played, as well as recent regulatory developments."

Report Number:
CRS Report for Congress, R43608
Author:
Publisher:
Date:
2014-06-19
Copyright:
Public Domain
Retrieved From:
Federation of American Scientists: http://fas.org/
Format:
pdf
Media Type:
application/pdf
URL:
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