Uh Oh, Reuters reports that regulators want Wall Street to hand over trading secrets, even their secret computer codes.The problem obviously is that once the government has this information, how will they keep it from falling into the wrong hands? This is yet another government overreach and an assault on our market. Secrets are intellectual property developed over time and at great cost. Maybe the Chinese asked for it (I’m kidding).
Reuters: U.S. securities regulators have taken the unprecedented step of asking high-frequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes.
The requests for proprietary code and algorithm parameters by the Financial Industry Regulatory Authority (FINRA), a Wall Street brokerage regulator, are part of investigations into suspicious market activity, said Tom Gira, executive vice president of FINRA’s market regulation unit.
“It’s not a fishing expedition or educational exercise. It’s because there’s something that’s troubling us in the marketplace,” he said in an interview.
The Securities and Exchange Commission, meanwhile, has also begun making requests for proprietary algorithmic trading data as part of its authority to examine financial firms for compliance with U.S. regulations, according to agency officials and outside lawyers