March 18 The Commodity Futures Trading
Commission is investigating deals between large high-speed
traders and the two futures-exchange operators - CME Group Inc
and IntercontinentalExchange Group Inc, the Wall
Street Journal reported citing people familiar with the matter.
The Securities and Exchange Commission enforcement officials
are also investigating whether stock exchanges provide
advantages to certain clients, including high-frequency traders,
by designing software programs that can give preferential
treatment to their orders, the Journal reported.
The CFTC and SEC were not immediately available for comment.
The CFTC probe is focused on incentive programs that give
high-volume trading firms financial benefits such as discounts
on fees the exchanges charge to execute trades, the Journal
The companies in focus are Virtu Financial Inc, which plans
to go public later this year, and Jump Trading LLC, the Journal
The two exchanges and the high-speed traders were not
available for comment outside regular U.S. business hours.
New York state's attorney general Eric Schneiderman on
Tuesday called for tougher regulation of stock exchanges and
alternative trading platforms that provide high-frequency
traders with unfair technological advantages that give them
early access to key data.
(Reporting by Supriya Kurane and Chris Peters in Bangalore;
Editing by Gopakumar Warrier)