The Financial Conduct Authority (FCA) has highlighted a number of concerns about the compliance and risk standards of firms employing algorithmic trading techniques.
In a report entitled Algorithmic Trading Compliance in Wholesale Markets, published on Monday (12 February), the regulator said the complex nature of algorithmic trading means poor oversight could turn "manageable errors into extreme events with potentially wide-spread implications". The FCA said recent cross-firm reviews of principal traders, investment banks and investment managers had found "further improvement is needed in a number of areas". Specifically, some firms "lacked a suitable process to identify algorithmic trading across their business and did not have appropriate docum...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
