Business

SEC targets computer trading

WASHINGTON — US stock exchanges could be subject to tighter oversight of automated trading under a federal proposal that advanced Thursday.

The Securities and Exchange Commission voted 4 to 0 to seek comment on rules that would require routine testing of trading systems. The exchanges would also be required to notify the SEC about problems, including systems comprised by hacking. Any problems would have to be quickly corrected.

Advertisement

The proposal follows several cases in which technical glitches disrupted trading. Stock trading now relies heavily on computer systems that exploit split-penny price differences. Stocks can be traded in fractions of a second, often by automated programs.

The rules would replace a voluntary program that most US exchanges participate in. The public has 60 days to comment on the rules, after which the SEC can adopt them.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

So-called high-frequency trading is estimated to account for more than 50 percent of all US stock trading.

Associated Press

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com