High-Speed Traders, Short Sellers Face Growing Asia Crackdown
- Thailand restricts certain types of trades as stocks languish
- Market watchers caution restrictions can tighten liquidity
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Regulators in Asia have tightened the screws on trades popular among hedge funds as stocks slumped, an attempt to stabilize markets that some worry may end up stifling key strategies.
Thailand’s plan to increase scrutiny on high-frequency trades — in effect from Monday — follows steps from China, where programmed trading will soon be subject to real-time monitoring. While authorities expect the moves to enhance transparency, the growing control over certain trades has raised concern that liquidity may tighten and make those markets overall less attractive.