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Direct Edge and Nasdaq to reward judicious market activity

US exchanges detail incentive plans to minimise excessive messages sent by high-frequency traders

Direct Edge and Nasdaq OMX Group became the latest exchange operators to try and tame a deluge of data produced by high-frequency trading firms, detailing programs to reward more judicious market activity.

The efforts come as market regulators have raised concerns around the number of trading messages generated by the largest firms, and the burden this may place on exchange technology that also needs to handle business from mutual funds, pension plans and individual investors.

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