The top U.S. securities regulator said on Thursday she is developing rules targeting high-speed traders, less transparent trading venues and order-routing practices, a move designed to promote fairness for investors, shine more light on the markets and bolster stability.
U.S. Securities and Exchange Commission Chair Mary Jo White’s ambitious proposals, unveiled in a speech in New York City, mark the first time she has articulated her plan for revamping equity market structure rules since she took over at the SEC in the spring of 2013.
It also marks one of the most ambitious equity market regulatory agendas since at least 2010, when the SEC rushed to install reforms to prevent a repeat of the “flash crash.”
White said she has numerous proposals in the works, including an “anti-disruptive trading” rule to rein in aggressive short-term trading by high-frequency traders during vulnerable market conditions, and a plan to force more proprietary trading shops to register with regulators and open their books for inspection.
She also said her staff is working on measures to improve how trading firms manage risks around their use of computer algorithms.