Brokers face fines over role in flash crash

Discussion in 'Wall St. News' started by ASusilovic, Aug 23, 2010.

  1. 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 “flash crash”, the head of a US watchdog said on Sunday.

    The Financial Industry Regulatory Association is undertaking a “sweep” of broker-dealers that offer market access to high-frequency traders to find out if they allowed these firms to run computerised trading programs – algorithms – without undertaking proper risk-management controls.
  2. nitro


    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.