10.21.2016

Japan to Tighten Regulations on High-Frequency Traders

10.21.2016

(this article originally appeared on Reuters)

Japan plans to tighten regulations on high-frequency trading (HFT), whose growing presence in the Tokyo Stock Exchange has raised concerns such trades could destabilise the market and put retail investors at a disadvantage.

Regulators in Europe and elsewhere are also placing high-frequency traders, who use ultra-fast computers to automatically place trades, under closer scrutiny as they have been blamed for accentuating market volatility.

Japan’s market regulator, the Financial Services Agency, made public on Wednesday its plan to require high-frequency traders to register and to ensure proper risk management measures are in place.

HFT accounted for about 70 percent of orders placed at the Tokyo Stock Exchange in 2016, FSA said.

“It is not appropriate to eliminate all algorithmic fast trading from the Japanese market as it includes the kind that contributes to smooth market transactions,” FSA said in materials handed out at its working group discussing the issue.

The agency said, however, it needs to have a tighter grip on HFT given concerns raised by market participants that these high-speed automatic trades could destabilise market.

Others were worried that retail investors without access to such services might feel disadvantaged and thus stop participating, FSA said.

India’s capital market regulator in August said it was looking at various potential limits on so-called algo traders, including imposing “random speed bumps,” which would randomly delay execution of some orders.

It's been a month since we had our Women In Finance Awards in New York City at the Plaza! Take a look back tab some moments, and nominate for our upcoming awards in Mexico City and Singapore here: https://www.marketsmedia.com/category/events/

4

Citadel Securities told the SEC that trading tokenized equities should remain under existing market rules, a position that drew responses from various crypto industry groups. @ShannyBasar for @MarketsMedia:

SEC Commissioner Mark Uyeda argued that private assets belong in retirement plans, saying diversified alts can improve risk-adjusted returns and that the answer to optimal exposure “is not zero.” @ShannyBasar reporting for @MarketsMedia:

COO of the Year Award winner! 🏆
Discover how Jennifer Kaiser of Marex earned the 2025 Women in Finance COO of the Year recognition.

Load More

Related articles

  1. The initial launch includes regulated data from TSX Venture Exchange.

  2. Hedge Funds Seek Outsourcing Alternatives

    The group detailed its new strategy, “Leading the Transformation.”

  3. The offer consists entirely of secondary shares to be sold by certain selling stockholders.

  4. This provides simplified operational requirements & moving from a fixed to a variable cost structure.

  5. Clock Synchronization: A Matter of Timing

    This brings the platform closer to the round-the-clock availability that defines modern digital markets.

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] Please review our updated Terms & Conditions and Privacy Policy carefully. By continuing to use our services after Aug 25, 2025, you agree to these

Close the CTA