US authorities are clamping down on computerised trading in the wake of the May 6 "flash crash".
Brokers who allowed high frequency traders access to markets without carrying out proper checks could be fined as part of a new crackdown undertaken by the Financial Industry Regulatory Association, reports the Financial Times.
The clampdown on high-frequency traders and their use of automatic trades follows the turmoil on May 6 when the US stock market plunged almost 1,000 points in a matter of minutes. The cause of the "flash crash" has yet to be pinpointed.
Earlier this year, the SEC proposed curbs on "naked" market access, whereby brokers allow traders access to exchanges without risk management controls.
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