Editing Program trading (section)

== Regulations ==

=== United States ===
In the United States, program trading has been subject to regulation and oversight in response to concerns about its impact on market stability and volatility. The New York Stock Exchange (NYSE) introduced rules known as trading curbs or circuit breakers to address extreme volatility caused by program trading during the 1980s and 90s. Depending on the severity of price movements, these rules can lead to the halt of all program trading or restrict the trading of sell portfolios to upticks only.<ref>{{Cite web |title=Program Trading: Meaning, Purpose, Example |url=https://www.investopedia.com/terms/p/programtrading.asp |access-date=2023-09-02 |website=Investopedia |language=en}}</ref>

In addition to NYSE rules, regulatory bodies like the [[U.S. Securities and Exchange Commission|Securities and Exchange Commission (SEC)]] and the [[Financial Industry Regulatory Authority|Financial Industry Regulatory Authority (FINRA)]] have established rules governing algorithmic trading strategies, including [[High-frequency trading|high-frequency trading (HFT)]]. FINRA Rule 3110 (Supervision) outlines the regulatory requirements for member firms engaged in algorithmic strategies.<ref>{{Cite web |title=Algorithmic Trading {{!}} FINRA.org |url=https://www.finra.org/rules-guidance/key-topics/algorithmic-trading |access-date=2023-09-02 |website=www.finra.org}}</ref>

=== China ===
The [[China Securities Regulatory Commission|China Securities Regulatory Commission (CSRC)]] has introduced a monitoring and reporting mechanism for program trading in Chinese stock markets in 2023. Stock exchanges in Shanghai, Shenzhen, and Beijing will implement rules on program trading and establish reporting systems to monitor unusual activities. These measures are set to take effect on October 9, 2023. The move comes in response to concerns about the role of computer-generated algorithms in stock trading, which have been blamed for exacerbating sell-offs in China's struggling stock markets.<ref>{{Cite web |title=China Tightens Oversight of Program Trading in Stock Market - Caixin Global |url=https://www.caixinglobal.com/2023-09-02/china-tightens-oversight-of-program-trading-in-stock-market-102099623.html |access-date=2023-09-02 |website=www.caixinglobal.com |language=en}}</ref>