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E-mail ID will not be published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.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Swift action plan may combat adverse effects of bad monsoon

    The bad news is out.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Simon J Evenett

Is it the end game for Greece?

Five months after the election of a left-wing government on ...

Zehra Naqvi

Green peace is key to overall wellbeing

Why do people head for the hills to recharge and ...

Dharmendra Khandal

Social media is not always a blessing

There is, perhaps, a misconception that social media is a ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture