SEC Greenlights FINRA’s Algorithmic Developer Rule

Law360, New York (April 7, 2016, 6:18 PM EDT) -- The U.S. Securities and Exchange Commission on Thursday approved the Financial Industry Regulatory Authority’s plans to require algorithmic trading developers to register as securities traders, saying the rule should help reduce market manipulation.

The approved rule will require algorithmic trading strategy developers to adhere to the same standards of knowledge currently applied to other individuals registered with FINRA as securities traders, a move the SEC said could help reduce the use of trading algorithms to manipulate markets.

“The Commission believes that improved education of firm personnel...
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