China is removing servers dedicated to high-frequency traders from local exchanges’ data centers, impacting domestic and global firms like Citadel Securities and Jane Street Group. The move aims to level the playing field and ensure market stability after stocks rallied. Chinese quants had $244 billion in assets under management by June.

Futures exchanges plan to add two milliseconds of latency for third-party servers, affecting high-frequency trading strategies in stock index futures and commodities. Trading firms may need to adapt to stay ahead of rivals. The changes will impact brokerage and server hosting fees. Chinese quants had $244 billion in assets under management by June.

Chinese stock exchanges are defining high-frequency trading and imposing tighter rules to curb their advantages. Regulators are shifting high-frequency traders away from exchanges following years of unease with their execution advantages. Thailand’s stock exchange also tightened rules on high-frequency trading last year. Officials have threatened to raise fees on high-frequency traders.

Read more at Yahoo Finance: China Clamps Down on High-Speed Traders, Removing Servers