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Chinese Regulator Proposes Ban On High-Frequency Trading

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...

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

And more...

Close-up of that spoofing algo in China A50 futures: pic.twitter.com/EOismqDE6K

— Eric Scott Hunsader (@nanexllc)