Furse heads trading probe

THE former head of the London Stock Exchange, Dame Clara Furse, has been appointed to head a government study into high-frequency trading.

The Treasury sponsored investigation led by the government office for science aims to explore the future challenges posed by computer generated trading.

High-frequency trading caused concern following the “flash crash” in the US on 6 May, when the Dow Jones plummeted 1,000 points in 20 minutes before recovering.

The London Stock Exchange estimates that more than a quarter of its trades are executed via high-frequency systems.

Dame Clara said: “I really welcome the opportunity to chair this important project.
“[Electronic trading] is a fundamental issue for the efficiency and integrity of global financial markets and the economies they serve.”