Trading concern grows over kill-switch technology
Bank compliance and legal counsel officers raise serious doubts over how new regulatory rules to curb rogue algo trading would be applied and who would potentially be held liable.
Legal counsel and compliance officers at investment banks say proposed regulations that would require brokers to carry out real-time monitoring of algo trading would be operationally difficult.
Panellists at the recent Trading Architecture Asia forum note industry fear over technology such as "kill switch" -- which equity trading desks at investment banks have been using to terminate clients' direct access to an exchange -- because of the potential for being held liable by regulat…
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