China Weighs Tenfold Fee Increase on High-Frequency Traders
- Regulators consulted some firms to gauge impact, people say
- Officials have pledged to slow such traders by raising costs
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China is considering a fee hike of at least tenfold on high-frequency trading, its latest attempt to rein in some quantitative strategies deemed by regulators as a threat to fairness in the nation’s retail investor-dominated stock market.
The China Securities Regulatory Commission and the country’s stock exchanges have consulted some market participants on draft plans to raise a 0.1 yuan (1.4 cents) fee on buy and sell orders to at least 1 yuan if the transactions meet the threshold of high-frequency trading, according to people familiar with the matter, who requested not to be named as the discussions were private.