Regulators in Asia have tightened the screws on trades popular among hedge funds as stocks slump, an attempt to stabilise markets that some worry may end up stifling key strategies.

Thailand’s plan to increase scrutiny on high-frequency trades – in effect from Monday – follows steps from China, where programmed trading will soon be subject to real-time monitoring. While authorities expect the moves to enhance transparency, the growing control over certain trades has raised concern that liquidity may tighten and make those markets overall less attractive.

Bloomberg