Some hedge funds could be among the trading firms forced to register as dealers and be subject to greater regulatory scrutiny by the SEC, according to a report by CNBC.
The commission has proposed two new rules that would require algorithm-based, high-frequency traders to come under SEC scrutiny in a bid to ensure market liquidity.
Under the terms of the new rules, firms or persons who purchase and sell securities in the same day or make profit through bid-ask spreads would be required to register as a dealer.
