29 July 2015

SEC considers electronic tagging of high-frequency traders - WSJ

07 April 2010  |  7885 views  |  0 biometrics eye

The US Securities and Exchange Commission is considering the electronic tagging of trades conducted by automated trading shops in an effort to keep tabs on the activities of high-frequency traders.

The plan would see the watchdog attach unique identifiers to traders that aren't registered market makers or broker-dealers, according to anonymous sources cited by the Wall Street Journal.

The agency is undertaking a cost-benefit analysis of the process, and is expected to move forward with a proposal in the near future, says the paper, citing "several people familiar with the process".

The tagged trading data, released a day after transactions were executed, would be available only to regulators, say the sources.

The initiative is the latest move in a global effort to re-write the rule book for a new era of high-speed automated trading.

Last week, the Committee of European Securities Regulators (CESR) kicked off a review of "technology driven" developments in European trading as part of the EU's revision of the Markets in Financial Services Directive (MiFID).

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