Since 2005, the Securities Exchange Commission (SEC) along with Commodities and Futures Trading Commission (CFTC) and Dodd Frank Act has been increasing regulation on financial trading. The various securities trading bodies have launched several regulations towards regulating the overall activity in the financial markets.
Such rules include the regulation of high speed trading, as well as, managed accounts, which are becoming popular. Currently the foreign exchange market accounts for more than $5 trillion worth of trades per day and $3.2 trillion of that figure goes through managed Forex accounts.
Managed accounts are an ideal way of making profits especially if you are a beginner in the Forex Trading market or in cases where individuals cannot find the time to do the business by themselves.
With the right rules in place, managed accounts could become more popular than what the current numbers suggest. Nonetheless, the financial markets have undergone some significant transformation over the years, as the various regulatory bodies continue to lay down new rules and framework for operating parties.
From the launch of the SEC, rule 612 sometimes referred to as the sub-pennying rule in 2005, to the day that Wall Street Journal published this report, which suggested an uncertain future of high frequency trading regulation, it is right to say that things look a bit better than a few years ago.
In June this year, the SEC released a report saying that it is starting to scrutinize the activity in High Frequency Trading Platforms. However, according to the report on Wall Street Journal, technology may be outpacing SEC’s ability after the discovery of uneven data distribution from the regulatory body.
According to the report, academic researchers found that the SEC’s platform for releasing company filings inadvertently gave some paying investors and newswires the data up to more than a minute before releasing it to the rest of the market. However, it is expected that the SEC would try to solve this issue expeditiously as it tries to catch up with the private sector.
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