The Securities and Exchange Commission this week said it’s in the early stages of a major examination into the operations of hedge fund companies and investment banks that engage in high-frequency trading.

Carlo Di Florio, director off the SEC Office of Compliance, Inspections and Examinations, told On Wall Street that the regulatory agency has hired several experts -- “people with PhDs in mathematics” or other expertise -- to examine, in depth, the whole practice of trading stocks using computer programs and algorithms.

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