ASIC considering changes to rules covering computer trades, brokers

The Australian Securities and Investments Commission (ASIC) is considering changes to rules covering algorithmic share trading as the worldwide trend of automated trade orders moves to Australia.

ASIC reports the system was open to "a number of potential market abuses" and said that algorithms could affect the integrity of the market.

The regulator was working actively with people who were using inefficient and defective algorithms.

The report was ASIC's first on the issue since taking over surveillance from ASX Ltd in August last year.

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