washington: Unlicensed high-frequency traders will no longer be able to gain unfettered or ”naked” access to public markets under a rule being considered by the United States‘s Securities and Exchange Commission.
Reuters reported that SEC would meet later on Wednesday to decide whether to require brokerages to have rules in place to protect against potential mishaps from unlicensed traders when brokerages rent out their access to the markets.
The SEC was also expected to propose a controversial plan that would allow it to reward whistle-blowers if the information would lead to a successful enforcement case.
If the SEC decides to crack down on brokerages that rent out their market access to traders, it will be the commission‘s first rule designed to level the playing field between retail investors and high frequency traders.
Even before the May 6 market crash, the SEC had begun contemplating changes to the equity markets. The regulator has proposed rules to make anonymous trading venues known as dark pools more transparent and to ban flash orders that exchanges show to some traders before disclosing them to rest of the market.
Read More:http://www.punchng.com/Articl.aspx?theartic=Art201011041132879
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