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SEC says no to Nasdaq request for indiviudal trading algorithms

The U.S. Securities and Exchange Commission rejected Nasdaq’s request to offer clients trading algorithms that would enable them to execute buy and sell orders according to predetermined guidelines.

Nasdaq failed to specify in its proposal how it would ensure that orders generated under its plan would comply with rules requiring risk checks on buy and sell requests before they are sent to markets, the SEC said in a Jan. 11 notice. It also didn’t respond to criticism by SIFMA that the offering would compete unfairly with algorithms supplied by brokers, the SEC said.