FSA investigates high-frequency trading

UK and US regulators address potential market manipulation in high-frequency trading

LONDON & WASHINGTON, DC - The UK Financial Services Authority (FSA) is investigating the market abuse potential within high-frequency trading in financial markets.

The FSA is reportedly talking to an unspecified number of investment banks, hedge funds and investment managers to assess the impact of high-frequency trading on equities markets.

The UK regulatory inquiry - which it says has not reached the status of a probe - parallels that of the US Securities and Exchange Commission (SEC), which is investigating concerns that electronic indications of bids and offers are being disseminated to a select group of brokerages.

SEC chairwoman Mary Schapiro also said it would examine "dark pools" of private electronic markets operated by brokerages that escape current disclosure requirements.

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