U.S. Securities and Exchange Commission

Regulators propose tighter rules for high-speed traders

Regulators are proposing new procedures to monitor high-speed trading more closely in response to wild market swings brought on by a series of technical breakdowns.

More than 70% of all trading today is automated, the Commodity Futures Trading Commission said Tuesday as it voted unanimously in favor of new registration standards for high-speed traders.

The systems use algorithms to spot variances in market data, allowing trading firms to deliver buy and sell orders in milliseconds.

That technology has led to a number of high-profile glitches, including one this summer that shut down the New York Stock Exchange for almost half a day.

The CFTC proposals would require...