US SENATORS launched a probe into high frequency trading laws yesterday following the botched Facebook offering in May and the near collapse of US broker Knight Capital last month.
Influential lawmaker senator Jack Reed, who leads the Senate Banking subcommittee on securities, said market problems related to HFT programmes needed to be reviewed.
“These failures in electronic trading appear to be affecting investor confidence in the US market structure,” he said. “Our market place has been evolving very quickly and it is not clear our rules have kept up.”
Virtu Financial partner Chris Concannon, giving evidence yesterday, called for a “kill switch” to be introduced to shut off rogue algorithms from the market.