Schumer Seeks Market-Maker Obligations for Computerized Traders
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U.S. Senator Charles Schumer, responding to concerns that high-frequency traders abandoned markets during the May 6 plunge, said more financial firms should face a legal obligation to buy or sell shares.
Computer-driven traders who “effectively” make markets for at least 25 stocks should be required to provide liquidity, Schumer, a New York Democrat, wrote in a letter today to Securities and Exchange Commission Chairman Mary Schapiro. Such an obligation would help prevent future plunges, he said.