HFT Regulation: How Global Authorities Are Trying to Curb High-Frequency Trading! 🏛️📏
By July 2025, regulatory bodies around the world, including the SEC in the USA, ESMA in Europe, and FCA in the UK, continue to seek a balance between encouraging HFT innovations and protecting market integrity. Key regulatory focuses include:
Ban on Manipulative Practices: Combating "spoofing" and "front-running."
"Circuit Breakers": Mechanisms for automatic trading halts during sharp price movements.
Liquidity Control: Monitoring the impact of HFT on market stability.
Regulation of Crypto-HFT: In the crypto industry, HFT regulation is still less developed, but there is growing interest in creating rules to ensure fairness and prevent manipulation. This is a complex task given the global nature of HFT and the constant evolution of technology.
