Are there any laws concerning the use of computer “bots” to generate automated trading on financial markets?

In Hawaii, computer bots are subject to the same laws and regulations as other automated trading systems. Specifically, according to the Hawaii Securities Commission, trading bots are subject to the importation of Hawaii’s Uniform Securities Act. This act requires that all automated trading systems be registered with the Commission, and that the systems follow certain Anti-Money Laundering and other anti-fraud measures. Additionally, Hawaii has adopted rules set forth by the Financial Industry Regulatory Authority (FINRA). These rules require that all automated trading systems comply with strict Anti-Money Laundering guidelines and procedures, as well as ensure that trust services are properly managed. Furthermore, FINRA requires that all registered investment advisers and broker-dealers are subject to a greater level of scrutiny when using automated trading systems. Finally, Hawaii has adopted the laws and regulations set forth by the Securities and Exchange Commission (SEC). The SEC’s rules require that automated trading systems, including those run by bots, are properly supervised, have appropriate controls in place, and are regularly monitored. It is also required that the automated trading systems meet certain capital requirements, and only trade authorized securities. In conclusion, the use of computer bots to generate automated trading on financial markets in Hawaii is subject to the laws and regulations of the Uniform Securities Act, FINRA, and the SEC. The laws and regulations must be followed to ensure the safety and security of investors.

Are there any laws concerning the use of computer “bots” to generate automated trading on financial markets?

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