September 3, 2018 / 6:10 AM / 8 months ago

BOJ's Kuroda warns of risk from high-frequency trading

Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan July 31, 2018. REUTERS/Toru Hanai

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda on Monday warned that the growing presence of high-frequency trading (HFT) could exasperate price moves and hurt financial market stability.

“Assessments of HFT have not been entirely positive,” Kuroda told a seminar.

“If the risks of high-speed and frequency trading amplifying price changes ... are left unattended, they might impair financial market stability” and weaken the price discovery functions of the futures markets, he said.

HFT players refer to those who use automated algorithms to repeatedly execute small orders at extremely high speed and frequency.

Reporting by Leika Kihara; Editing by Chang-Ran Kim

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