US regulators probe high-speed trading companies

Tags: News
The Commodity Futures Trading Commission is investigating deals between large high-speed traders and the two futures-exchange operators - CME Group Inc and IntercontinentalExchange Group Inc, the Wall Street Journal reported citing people familiar with the matter.

The Securities and Exchange Commission enforcement officials are also investigating whether stock exchanges provide advantages to certain clients, including high-frequency traders, by designing software programs that can give preferential treatment to their orders, the Journal reported.

The CFTC and SEC were not immediately available for comment.

The CFTC probe is focused on incentive programs that give high-volume trading firms financial benefits such as discounts on fees the exchanges charge to execute trades, the Journal said.

The companies in focus are Virtu Financial Inc, which plans to go public later this year, and Jump Trading LLC, the Journal said.

The two exchanges and the high-speed traders were not available for comment outside regular US business hours.

New York state's attorney general Eric Schneiderman on Tuesday called for tougher regulation of stock exchanges and alternative trading platforms that provide high-frequency traders with unfair technological advantages that give them early access to key data.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India and the US have come a long way from the frostiness of the Cold War

    As far as atmospherics go, it could scarcely be bettered.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

When we the people fail our nation

Today, we turn 65 years old as a republic. A ...

Purnendu Ghosh

The relative measures of time

Clock, the time-keeper, is our central machine. This machine dictates ...

Shona Adhikari

All roads lead to Delhi, as it gears up for art fair

With the seventh edition of India Art Fair (IAF) coming ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture