Market Chatter: Japan to Toughen Penalties for High-Frequency Trading Abuse

MT Newswires Live
Aug 14, 2025

Japan's Financial Services Agency (FSA) is preparing to hike fines for firms engaging in manipulative high-frequency trading, targeting ultra-fast transactions executed in microseconds, Nikkei Asia reported on Thursday, citing the regulator.

An FSA advisory council will launch discussions by year-end, aiming to revise the Financial Instruments and Exchange Act by 2026, said the publication.

While high-frequency trading can enhance market liquidity, regulators globally are cracking down on abusive practices like "quote stuffing" - flooding markets with fake orders to distort prices, said the news daily.

Japan currently imposes surcharges based on illicit profits from such violations, added the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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