Compliance Monitor
New code of conduct to boost internal audit role
An FSA paper investigating whether high-frequency trading increases the execution costs of institutional investors could find no evidence that it does. It shows that HFT activity increases following improvements in exchange speed but there was no relationship discernible between this and institutional execution costs. As in the US, the FSA found the UK has broadly experienced a decrease in institutional execution costs over the last decade, interrupted for two years by the financial crisis.