Global securities regulators discussed market structure issues, such as the increasing significance of high-frequency trading (HFT), at a roundtable held by the UK’s Financial Services Authority and the U.S. Securities and Exchange Commission.
The FSA and SEC jointly hosted a roundtable discussion Friday in London with global regulators on market structure issues, including: automated trading strategies such as high frequency trading; market fragmentation; undisplayed liquidity, such as dark pools; and the approaches regulators might adopt in response to these developments.
The regulators report that there were extensive discussions on all aspects of HFT; its impact on market liquidity and market efficiency; the potential for market abuse and the impact on long-term investors. The meeting also highlighted the need for global coordination on regulatory approaches to HFT.
“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,” noted SEC chairman, Mary Schapiro. “Co-operation among regulators at an international level is increasingly vital in ensuring the safety and soundness of our markets and protecting investors, and the meeting was a tremendous success in advancing such cooperation on market structure issues.”