Algorithmic trading audits required semiannualy, with doubled per-order penalties and enhanced surveillance to curb manipulation and repeat offenders. Algorithmic trading systems must undergo a system audit every six months by specified certified auditors; identified deficiencies must be reported to exchanges and remediated immediately, failing which exchanges shall block software use and may impose penalties. Exchanges must enhance surveillance of algorithm-generated orders and double per-order penalty charges, and impose additional suspension of proprietary trading for repeat high order-to-trade ratio offenders. Exchanges must amend rules, implement systems, and notify members.
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Algorithmic trading audits required semiannualy, with doubled per-order penalties and enhanced surveillance to curb manipulation and repeat offenders.
Algorithmic trading systems must undergo a system audit every six months by specified certified auditors; identified deficiencies must be reported to exchanges and remediated immediately, failing which exchanges shall block software use and may impose penalties. Exchanges must enhance surveillance of algorithm-generated orders and double per-order penalty charges, and impose additional suspension of proprietary trading for repeat high order-to-trade ratio offenders. Exchanges must amend rules, implement systems, and notify members.
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