An article relating to this blog post on Finextra:
FSA not interested in trawling through algo code
The UK's Financial Services Authority has no intention of "looking through lines of code" before signing off algorithms used by high-frequency traders, describing the prospect, floated by the European...
Now it's just dandy that the FSA does not see a role in regulating Algo trading! Surely this is a dereliction of duty of the first order! The financial services industry is highly technical relying on new developments and innovation to produce increased
revenue. The business of Algo trading is a fundamental factor in today's securities markets and the codes used a determining feature. How then can the FSA say they do not intend going over reams of code?
Surely the modern market is based on codes and the ability of financial services firms to service the investor? How can the FSA stand back and not take an interest? This is not serving the investor or the markets and calls into question why is the FSA there?
European laws are being created where Algo trading and the like will have to be regulated at code level and the FSA will be at odds with Europe if it rebels. Are we seeing the first death rolls of the FSA leading to a central European Regulator that actually
will do its job?