FSA, SEC lead global watchdog summit

National financial regulators discussed global approaches to tackling market structures at a meeting in London today, jointly hosted by the UK’s Financial Services Authority and the Securities and Exchange Commission.
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National financial regulators discussed global approaches to tackling market structures at a meeting in London today, jointly hosted by the UK’s Financial Services Authority (FSA) and the Securities and Exchange Commission (SEC).

The effects of automated trading strategies, such as high-frequency trading (HFT), market fragmentation and dark pools, were top of the list of issues discussed by securities regulators from Europe, the Americas, Asia and Australia.

According to a spokesperson for the FSA, the national watchdogs highlighted the need for global coordination on regulatory approaches to HFT and the impact of market fragmentation, particularly the benefits and consequences of the growth of alternative trading venues as well as analysis of the impact of dark pools.

“The rapid developments in trading technologies and trading platforms have had a profound impact on the evolution in the structure of markets around the world,” said SEC chairman Mary L Schapiro. “Cooperation among regulators at an international level is increasingly vital in ensuring the safety and soundness of our markets and protecting investors.”

“The meeting provided an opportunity for regulators from around the globe to discuss vital markets structure issues, particularly the impact and role of high frequency trading,” said Martin Wheatley, managing director, consumer and markets business unit, FSA, formerly CEO of Hong Kong’s Securities and Futures Commission.

 

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