News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Regulation

US regulators point to risks from rapid-fire trading and clearing

Report highlights how technology and regulations are changing the way markets function, potentially creating vulnerabilities

The rise of computerised trading and the changing roles of big banks are reshaping financial markets and potentially raising new vulnerabilities, US regulators said in their annual report on financial system threats.

The Financial Stability Oversight Council-a group of senior officials including the heads of the Federal Reserve and the Securities and Exchange Commission-also pointed to emerging risks from clearinghouses, a group of middlemen firms that have become a crucial part of market infrastructure.

WSJ Logo