Regulators, Traders are Out of Sync
Wall Street Journal
14 July 2014
by Bradley Hope
Clock Synchronization With Traders Is Challenge for Regulators
As trading hits warp speed, market cops have a growing headache: Clocks can’t always keep up.
Most brokers and trading firms now use high-speed computers to fire off thousands of orders in the blink of an eye, and the acceleration is hindering regulators’ ability to know precisely when buyers and sellers are matched up.
The Financial Industry Regulatory Authority and Securities and Exchange Commission—the primary overseers of U.S. stock markets—and the U.K.’s Financial Conduct Authority are tightening rules to impose stricter time-keeping standards.