BATS Files for Client Suspension Rules to Tackle Manipulative Market Behaviors

Expedited authority to cut manipulative behaviors “within weeks” awaiting SEC approval.

us-sec
US Securities and Exchange Commission headquarters in Washington, DC

The BATS Client Suspension rule has been filed with the Securities and Exchange Commission (SEC) which, if approved, would allow the exchange operator to take swifter action to clamp down on manipulative behavior, cutting the process down to "a matter of weeks."

The rule would specifically target spoofing and layering activities "often undertaken by small groups of day traders, often located in foreign jurisdictions, accessing the markets via US broker dealers," according to BATS executive vice president and general counsel Eric Swanson.

"While instances of spoofing and other similar activities are limited in the US markets, we believe regulators should have the ability to eradicate such disruptive behavior immediately," says Swanson.

Earlier this year BATS settled a case with the SEC for $14 million ─ the largest penalty issued by the market watchdog ─ relating to the way order types were described by Direct Edge on its exchanges.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here