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Chinese Regulator Proposes Ban On High-Frequency Trading

Tyler Durden's picture




 

It appears Chinese authorities want to be the monopoly manipulator of their stock markets. Just a week after BlackRock suggested (and Hillary spewed) plans for transaction taxes in US markets to effectively kill high-frequency-trading (and all its ills), China's Securities Regulator Commission (CSRC) has proposed limiting the use of automated trading programs in the stock market. Of course, just as we saw last nght in China futures, we assume CSRC only wants to ban "selling" algos and not "spoofers" pushing stocks higher.

CHINA PRESS: The China Securities Regulator Commission said it is seeking public opinion on limiting the use of automated trading programs in the stock market.

The stock market regulator said such automated trading systems could fuel market volatility and affect fairness.

 

It plans to tighten access and also to review the mechanisms behind automated trading systems and would authorize stock exchanges to levy extra charges on such automated systems.

 

The CSRC also wants to ban domestic investors from using overseas servers for their automated trading platforms. (China Securities Journal)

Despite the Citadel ban, HFT is alive and well in China futures... as Nanex exposes just last night...

Clear as a bell spoofing pattern in SGX FTSE China A50 futures in first 45 minutes after midnight EDT

And more...

 

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Mon, 10/12/2015 - 11:26 | 6658491 yogibear
yogibear's picture

Smell something burning?

Almost every day their trying something new to stop the market crazyness.

Matter of time before SHTF.

Mon, 10/12/2015 - 11:54 | 6658600 Bumpo
Bumpo's picture

Just tax 'em a penny-per-share-traded. That will slow down the Algos. HFT meet PPST!

Mon, 10/12/2015 - 13:22 | 6659082 Dazman
Dazman's picture

A penny per share traded won't do anything because often the quotes never trade. Perhaps a penny per contract quote /change might do something.

Mon, 10/12/2015 - 12:24 | 6658757 venturen
venturen's picture

trying? Are you sure? They wish to have a one way market...up regardless of profit.

Mon, 10/12/2015 - 11:30 | 6658509 CoolidgeLives
CoolidgeLives's picture

Just issue zero-coupon bonds, have the central bank buy them, give poor people the money, default on the bonds. May as well happen now since it's going to later.

Mon, 10/12/2015 - 11:32 | 6658515 RaceToTheBottom
RaceToTheBottom's picture

Anything that WS does not want, I am for.  It could be proposed by Satan himself.  I think WS is worse than Satan... Or China

Mon, 10/12/2015 - 11:56 | 6658609 FrankDieter
FrankDieter's picture

YOU GOT THAT RIGHT !!

Mon, 10/12/2015 - 11:34 | 6658523 tommylicious
tommylicious's picture

Drag the flash boiz thru the streets!

Mon, 10/12/2015 - 11:34 | 6658524 rayban
rayban's picture

At last!

Mon, 10/12/2015 - 11:36 | 6658531 Dr. Engali
Dr. Engali's picture

Good luck shoving the genie back in the bottle. Skynet will not go quietly.

Mon, 10/12/2015 - 11:37 | 6658533 MrBoompi
MrBoompi's picture

HFT is one of the main methods of Fed/Wall St control of markets.  We've known HFT is nothing but criminal manipulation of markets for years, yet nothing is done.  I'd be very surprised if China is allowed to do away with it.  

Mon, 10/12/2015 - 11:38 | 6658534 Blopper
Blopper's picture

If the government says "Yes" it means "No".

If the government says "No" it means "Yes".

Nothing can be simpler than that.

Mon, 10/12/2015 - 11:45 | 6658562 Never One Roach
Never One Roach's picture

Ya mean I wont be able to buy and sell a billion shares in a millisecond anymore? I'll have to find another way to fleece the retail investors, Mom, Pop, and the other suckas.

Mon, 10/12/2015 - 11:54 | 6658604 FrankDieter
FrankDieter's picture

The chinx are as crooked as the Wall Street theives.

Mon, 10/12/2015 - 12:11 | 6658683 Omega_Man
Omega_Man's picture

Wait...is ZH saying that HFT is good??? HFT and naked short sellers need to be beheaded

Mon, 10/12/2015 - 12:13 | 6658691 Trips Trading
Trips Trading's picture

Longs should be careful now as the bears seem eager to take back some part of this 8% rally. 

OCT9-10 is an important cycle period. 
http://tripstrading.com/2015/10/09/sp500-how-cycles-take-their-time/

Doji, Friday, today again? 

http://tripstrading.com/2015/10/10/sp500-suffering-from-low-energy/

Mon, 10/12/2015 - 12:24 | 6658756 Batman11
Batman11's picture

China could be quicker to learn than the West that has been dealing with asset bubbles since Tulip mania in 1600s Holland.

 

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