Australia Mulls Kill-Switch Rules for Algorithms, ASIC Says
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Australian regulators are considering requiring all trading algorithms to have an inbuilt “kill switch” to immediately disable them if they malfunction, Australian Securities and Investments Commission Chairman Greg Medcraft said at a conference in Sydney.
ASIC is also mulling a mandate that any trades done through a dark pool, an off-exchange venue that doesn’t display prices or the identity of buyers and sellers, have meaningful price improvement from public platforms, Medcraft said. Australia’s latest consultation paper on electronic trading closed for comments Sept. 14. Final rules are expected this month.