Cybersecurity
House Votes to Require SEC Subpoena for Traders’ Source Code
- The code is a secret sauce that fuels firms’ profits
- Bill also applies to trading algorithms from hedge funds
This article is for subscribers only.
The House voted Wednesday to ensure the U.S. Securities and Exchange Commission would continue to have to seek a subpoena before accessing proprietary source code from high-frequency traders, the secret sauce that fuels profits.
The bill, passed 271-145, applies to proprietary trading algorithms from broker-dealers, hedge funds, and other SEC-regulated entities. The Senate hasn’t scheduled a vote on the legislation.