CFTC Panel Urges Broad Definition of High-Frequency Trading

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U.S. financial regulators should adopt a broad definition of high-frequency trading to prevent “regulatory arbitrage,” according to an advisory committee to the Commodity Futures Trading Commission.

“It is important to recognize that high-frequency trading is a means rather than an end in itself, and that there are many types of market activity that can be potentially labeled as HFT,” members of a CFTC advisory working group said in a report to the agency’s Technical Advisory Committee.