Saturday, Mar 7, 2015Saturday, Mar 7, 2015

US futures regulator CFTC probing speed traders

Published on Apr 4, 2014 4:33 AM

WASHINGTON (REUTERS) - The US Commodity Futures Trading Commission is investigating high-frequency traders to see if they were breaching the derivatives regulator's rules, its chief said on Thursday.

"Staff (is) responding to concerns brought to us about certain practices, whether it be spoofing just to give one example, whether that's running afoul of our rule," Acting Chairman Mark Wetjen told reporters during a meeting.

"And then whether or not it meets the definition of manipulative activity under our statute," he said.

Many banks and hedge funds use sophisticated computer programs to send large batches of orders into equity and futures markets in fractions of a second, a controversial practice known as high-frequency trading (HFT).

If you are not a subscriber, you can get instant, unlimited access here