Senate panel to hold hearing on HFT

High-profile tech glitches expose high-frequency trading practices

Set your Tivos, hedge funds and broker dealers. A U.S. Senate banking subcommittee will hold a hearing next Tuesday to examine whether regulators should impose new rules to protect markets from glitches in a world of high-frequency trading.

This is yet another hearing surrounding HFT and its perceived dangers, which came to light this year after Nasdaq's botched rollout of the Facebook IPO and the rogue algorithm that lost Knight Capital $440 million in a single trading day.

According to Rhode Island Democrat Jack Reed, who chairs the Senate Banking subcommittee on securities and called this hearing, these events "raise serious questions about whether regulations have kept pace with changing technology in the marketplace."

Expected to testify next week are New York Stock Exchange Chief Operating Officer Lawrence Leibowitz (and brother of Daily Show host Jon Stewart) and Nasdaq OMX's Vice President of Transaction Services Eric Noll, as well as executives from Credit Suisse and ITG.

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