|High Frequency Trading in Qualcomm shares|
THE federal government has approved new rules clamping down on high-frequency share trading, in response to fears the market's integrity was being threatened.
Financial Services Minister Bill Shorten on Tuesday said the policies - including mandatory ''kill switches'' for algorithmic trading - would improve Australia's chances of avoiding a ''flash crash'', seen in the United States in 2010.
Investor groups, some banks and the Australian Securities Exchange have called in recent months for tighter regulation of high-speed trading, saying the practice posed risks to market stability.
In response, the government on Tuesday gave the Australian Securities and Investments Commission new powers to police the use of computerised algorithms, as well as tighter rules on trading in ''dark pools''.
Read more: http://www.smh.com.au/business/government-approves-kill-switch-power-on-highspeed-trading-20121120-29o0z.html#ixzz2CodOZGG8