John I. Sanders Authors Article on High-Frequency Trading and SEC Regulation
John I. Sanders, Head of International Capital Markets at Moore & Van Allen (MVA), authored the article, “High-Frequency Traders: How the SEC Can Tighten Regulation While Maintaining the Benefits of a Competitive Market,” published in the American University Business Law Review.
The 2010 “Flash Crash” of the U.S. stock market brought the overlooked practice of high-frequency trading into the spotlight for the first time. Initial efforts to study and curtail the practice have been unsuccessful. This article argues that there are three potent and readily available tools for limiting the harmful excesses of high-frequency traders. With these implemented, markets will continue to function at historically low costs for all investors with the aid of healthy competition between high-frequency traders.