30 March 2017
visit nextgenbanking.co.uk

SEC knocks back Nasdaq algo plans

15 January 2013  |  4950 views  |  0 Nasdaq time square New york

The Securities and Exchange Commission has knocked back proposals by Nasdaq that would have allowed the exchange to compete with US brokers in the provision of algorithmic trading software tools.

The US exchange operator in May asked the SEC for permission to begin offering a new 'benchmark orders' programme to member firms. This would offer three basic algorithmic trading strategies that would channel orders at either a volume-weighted average price, time-weighted average price, or as a percenage of trading volume.

In rejecting the proposals, the regulator says that Nasdaq failed to specify how the new service would comply with rules requiring orders to be checked for risks before they are sent out to the market.

The SEC was particularly concerned about a potential conflict with other rules that provide immunity for exchanges when problems arise from trading glitches.

The watchdog says that Nasdaq didn't deal with competition concerns raised by large broker-dealers, who supply similar services to sell-side institutions and smaller brokers, and who face unlimited liability in the event of a service breakdown.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nasdaq suffers data feed glitch

Nasdaq suffers data feed glitch

04 January 2013  |  6579 views  |  0 comments | 3 tweets
Nasdaq forced to cancel trades

Nasdaq forced to cancel trades

14 December 2012  |  8685 views  |  1 comments | 5 tweets | 3 linkedin
Nasdaq blames human error for botched WhiteHorse IPO

Nasdaq blames human error for botched WhiteHorse IPO

06 December 2012  |  6106 views  |  0 comments | 2 tweets
Nasdaq OMX defends $62m Facebook compensation package

Nasdaq OMX defends $62m Facebook compensation package

20 September 2012  |  5540 views  |  0 comments
Citi slams Nasdaq OMX over Facebook IPO compensation

Citi slams Nasdaq OMX over Facebook IPO compensation

23 August 2012  |  5280 views  |  0 comments
SEC could make Nasdaq OMX upgrade systems over Facebook IPO - WSJ

SEC could make Nasdaq OMX upgrade systems over Facebook IPO - WSJ

29 June 2012  |  5736 views  |  0 comments
Nasdaq OMX offers brokers $40m over Facebook fiasco

Nasdaq OMX offers brokers $40m over Facebook fiasco

07 June 2012  |  5301 views  |  0 comments
Facebook IPO fallout continues as investor sues Nasdaq OMX

Facebook IPO fallout continues as investor sues Nasdaq OMX

23 May 2012  |  6001 views  |  0 comments
Facebook float tests Nasdaq resilience as stock opening delayed

Facebook float tests Nasdaq resilience as stock opening delayed

18 May 2012  |  6245 views  |  0 comments
Morgan Stanley penalised for DMA algo trade gone wrong

Morgan Stanley penalised for DMA algo trade gone wrong

16 May 2012  |  6770 views  |  0 comments
Nasdaq to compete with brokers in algo trading

Nasdaq to compete with brokers in algo trading

14 May 2012  |  4352 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit abe-eba.eu

Top topics

Most viewed Most shared
Danish banks add Dankort payments to mobile walletsDanish banks add Dankort payments to mobil...
15074 views comments | 2 tweets | 7 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
13624 views comments | 53 tweets | 32 linkedin
MAS to roll out national KYC utility for SingaporeMAS to roll out national KYC utility for S...
12416 views comments | 33 tweets | 45 linkedin
hands typing furiouslyTwo key technologies driving Machine Learn...
8883 views 0 | 16 tweets | 4 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job