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Chicago Fed Sees Risk From High-Speed Trading in Stock Market

Faster and less transparent markets pose risks that require more study, according to the Federal Reserve Bank of Chicago, which said high-speed trading may create dangers that aren’t properly appreciated or policed.

In a document posted on the Chicago Fed website, senior policy adviser Carol Clark highlighted five questions for policy makers and regulators to consider, including how to oversee trading that’s spread across different asset classes around the world and whether rulemakers have adequate technology and systems in place to oversee markets.