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Brooklyn Journal of International Law

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First Page

585

Abstract

High frequency trading has transformed global financial markets, introducing both efficiency gains and significant regulatory concerns. This Note analyzes the divergent approaches of the United States and China in regulating high frequency trading, focusing on how each system addresses issues of market manipulation, information asymmetry, and systemic risk. It contends that the United States’ reliance on outdated and indirect regulatory mechanisms, such as Regulation NMS, has failed to keep pace with technological advancements. In contrast, China’s more recent and targeted regulatory framework provides clearer guidance and stronger oversight of high frequency trading practices. This Note concludes that a hybrid approach, combining the flexibility of the U.S. system with the precision of China’s regulatory model, would better address the complexities of modern electronic trading.

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