SEC Probing Some High-Tech Trading

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The U.S. Securities and Exchange Commission is “rigorously” investigating whether financial traders are using technology to manipulate markets, the agency’s enforcement and inspections chiefs said today. Bloombergg reports that ther agency is investigating suspected “market manipulation based on complex use of technology and advanced trading systems,” said SEC Enforcement Director Robert Khuzami and acting examinations director John Walsh in testimony prepared for a Senate Banking Committee hearing. The story has no details on the scope of the investigation, or whether particular practices are being targeted.

This news comes on a day when the SEC is being lambasted by legislators for its failure to detect the huge Ponzi scheme operated by Bernie Madoff.

About the Author

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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  1. flash

    See the movie "stock Shock" to learn what damage these traders can do to the market. Amazon has it on DVD