Broker-dealers who are sponsoring their customers' direct access to securities markets need to face a "higher level of accountability with respect to the algorithms they use,'' according to their chief regulator.

Richard Ketchum, the chairman and chief executive of the Financial Industry Regulatory Authority, said Tuesday that the higher standard of accountability needs to be applied to algorithms whether they come from the firm itself or a vendor and, most particularly, if the algorithms are "used across a wide range of borses.''

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access