China’s HFT Criminal Case a Taste of Official Post-Crash Policy
- Yishidun to be prosecuted in Shanghai for market manipulation
- Firm executive has sued regulator for overreaching authority
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A Chinese criminal court case against a high-frequency trading firm will for the first time highlight how authorities in the world’s second-largest economy view the controversial practice.
The trial, which will be held in Shanghai No. 1 Intermediate People’s Court, will offer the chance to hear China’s official stance on HFT, the super-fast computer traders that have aroused the suspicion of regulators around the globe. A date for the hearings hasn’t been set, but they will probably start in the next three months if no extensions are filed. Shanghai prosecutors said on Aug. 4 they have charged Yishidun International Trading with manipulating the country’s futures market.