global regulators discuss high frequency trading

The FSA and SEC hosted a roundtable discussion on market structures on Friday, looking at the impact of automated trading strategies such as high frequency trading (HFT).

global regulators discuss high frequency trading

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Hosted by Martin Wheatley, a managing director of the FSA, and Mary Schapiro, SEC chairman, the roundtable was attended by regulators from across the globe.

The attendees discussed the appropriate approaches regulators might adopt in light of HFT, market fragmentation and undisplayed liquididy such as "dark pools".

Both positive and negative aspects of HFT were noted, including the impact on market liquidity and market efficiency and the potential for market abuse and effect on long-term investors.

The meeting highlighted the need for "global coordination on regulatory approaches to HFT".

Wheatley said: "The meeting provided an opportunity for regulators from around the globe to discuss vital markets structure issues, particularly the impact and role of HFT.

"The meeting allowed for the sharing of useful information between the regulatorsand wil contribute to a sound basis for continued work to be done at a global level."

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