City Regulator: Algo Rithm and Conduct Authority

city regulator: On Wednesday, a senior official at the Financial Conduct Authority was asked how it regulated algorithmic trading – computers programmed to take bets on markets, according to The Guardian. Megan Butler, director of supervision at the City regulator, said: Our approach is to recognise that a poorly designed, poorly controlled, inappropriately used algo rithm can have a very significant impact on proper operation of the market. Sterling plunged in a few minutes of early trading in Asia on 7 October, prompting the Bank of England to say it was looking into possible causes of the sudden movement. Andrew Bailey, the chief executive of the FCA, said the use of such trading systems had been discussed with companies in the City in the run-up to the EU referendum on 23 June. There had been two financial crises in the past decade, he said, the first about the strength of the banking industry, which called into question our financial stability at the level of the whole system . Facebook Twitter Pinterest Andrew Bailey said the rules brought in since the financial crisis must not be watered down. Bailey, who took over at the FCA in July after a long career at the Bank, was setting out his mission for the regulator as he pledged to clean up the behaviour of major financial companies after a very sorry history of scandals. (news.financializer.com). As reported in the news.