THE corporate regulator will unveil further measures today to tackle the growing influence of high-frequency traders and "dark pool" exchanges on local equities trading, with an increased tax on the former seen as the most likely outcome.
The Australian Securities & Investments Commission's report results from the work of two separate taskforces set up late last year to tackle the "emerging risks" from ultra-fast computerised trading and the growth of share transfers on platforms not subject to the usual scrutiny of a "lit" exchange.
Submissions to the inquiries have broadly favoured a higher impost on HFTs, who exploit minute market differences by placing and then withdrawing a large number of orders on-market.
While the jury's out on the dangers of HFTs, computerised trading has been blamed for "flash crashes" on exchanges globally, notably the May 2010 plunge which temporarily excised $US1 trillion on Wall Street.
