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.
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.