China’s securities regulator has instructed brokers to remove client-dedicated servers from data centers in local exchanges to level the playing field against high-frequency traders. This move aims to discourage market speculation amid concerns of a market bubble. Foreign players like Citadel Securities and Jane Street Group could be affected.

The Chinese securities regulator is cracking down on high-frequency traders by requiring brokers to remove servers from exchange data centers. This move, aimed at creating fair trading conditions, could shake up the industry and impact both Chinese and foreign traders. Shanghai, Dalian, Zhengzhou, and Guangzhou exchanges are among those affected.

China’s securities regulator aims to discourage market speculation and protect small investors amid a market rally. The Shanghai Composite Index hit decade-highs last week, prompting tighter margin requirements to cool the market. Regulators vow to crack down on excessive speculation and maintain market fairness.

China is tightening rules on high-frequency trading to avoid destabilizing speculation. The high-frequency trading market in China is estimated to be worth $222.60 billion by 2023, attracting foreign players due to market inefficiencies. The move could also affect Chinese futures brokerages with many high-frequency-trading clients.

Regulators around the world, including the EU and India, are tightening scrutiny over algorithmic and high-frequency trading. Last year, Indian regulators barred Jane Street from the local market for manipulating stock indices through derivatives. China is moving to ensure fair trading conditions for all investors.

Read more at Yahoo Finance: China curbs ‘flash boys’ access to exchange data, sources say