Bloomberg – The U.S. hedge-fund industry’s biggest lobbying group urged regulators against cracking down on high-frequency trading, saying new rules would increase costs for all investors and make markets less liquid.
Requiring computerized traders to buy and sell shares during periods of market stress would reduce volume, Stuart Kaswell, general counsel of the Washington-based Managed Funds Association, wrote in a Sept. 12 letter to a panel advising the Securities and Exchange Commission and Commodity Futures Trading Commission. Investors would pay more for stock transactions as a result of the market maker requirement, Kaswell wrote.
