Report

Algorithmic Trading: Hong Kong Monetary Authority Discusses Supervisory Expectations, Evolving Market Manipulation Risk

March 2020

The Hong Kong Monetary Authority published a circular on March 6, 2020, Sound Risk Management Practices for Algorithmic Trading, setting out its supervisory expectations and sound risk management practices on algorithmic trading activities. We recommend that authorized institutions that carry out algorithmic trading activities undertake a thorough review of their existing policies against the HKMA’s supervisory expectations and sound practices, and assess the extent to which they need to update their existing policies in order to align with the HKMA’s supervisory expectations.

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