China cracks down on automated trading

[unhappycamper]

http://www.dw.com/en/china-cracks-down-on-automated-trading/a-18619569

As stocks in China continue slipping, the Asian country's securities watchdog has started looking into the impact of computerized trading on the share market. It hopes to stop the current volatility of stock prices.

China cracks down on automated trading
31.07.2015

In its latest bid to restore calm to the domestic stock markets, Chinese authorities confirmed Friday that they'd started investigating automated trading practices and their role in the continued sliding of many shares.

China's two main stock markets have lost about 30 percent of their value since mid-June, with authorities bending over backwards to prevent a further sell-off.

The China Securities Regulatory Commission (CSRC) said it was looking into institutions and individuals and their role in program or automated trading, which it said had amplified big fluctuations on the stock market.

The practice of computerized automated trading typically involves transactions being carried out at high speed on a large number of stocks.

[bemildred]

1. If you let traders game the system, they will. nt

[Gothmog]

2. HFT makes the markets more unstable

I dislike this form of trading