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FCA Publishes Report On The Supervision Of Algorithmic Trading

The Financial Conduct Authority (FCA) has today published a report on the supervision of algorithmic trading in wholesale markets. The report summarises the key areas of focus for algorithmic trading and highlights areas of good and bad practice observed within previous cross-firm reviews. Automated technology brings significant benefits to investors, including increased execution speed and reduced costs. However, it can also amplify certain risks. It is therefore essential that key oversight functions, including compliance and risk management, keep pace with technological advancements.  The report focuses on five key areas within algorithmic trading compliance in wholesale markets: Defining Algorithmic Trading Development and Testing Process Risk Controls Governance and...