Brokers who allowed high-frequency traders to have access to the markets without undertaking proper checks on them face potential fines as part of a clampdown following the âflash crashâ, the head of a US watchdog said on Sunday. The Financial Industry Regulatory Association is undertaking a âsweepâ of broker-dealers that offer market access to high-frequency traders to find out if they allowed these firms to run computerised trading programs â algorithms â without undertaking proper risk-management controls. http://www.ft.com/cms/s/0/0ab57556-ae17-11df-bb55-00144feabdc0.html?ftcamp=rss
That is really interesting. It is both fortunate and unfortunate. I would have always used the privilege of naked access to get a legitimate edge. It appears that others used it to confuse and take advantage of the system itself. It never fails. A few idiots ruin it for everybody.