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

In the state of Oregon, there are laws concerning the use of computer “bots” to generate automated trading on financial markets. Bot trading is a form of algorithmic trading and is designed to take advantage of small price movements in the market. This type of trading can be done manually or with computer algorithms. The Oregon Uniform Securities Act of 1973, and amendments made in 1989, 1992, and 1995, regulate the use of bots on financial markets in Oregon. The Act requires that all businesses participating in the buying or selling of stocks, bonds, mutual funds, and other investments register with the state of Oregon and become a member of the Oregon Division of Finance and Corporate Securities. In addition, the Oregon Division enforces strict rules and regulations related to the use of bots. These rules include restrictions on the types of bots allowed to trade, as well as limits on the amount of financial exposure and risk a bot is allowed to take on. All bot trading must be done in accordance with the Oregon Rules and Regulations and must comply with the Oregon Securities Act. The Oregon Securities Act also requires that all participants trade fairly and honestly and refrain from fraudulent or manipulative practices. Any trader found in violation of these guidelines can face serious civil and criminal penalties. As such, it is important that any person or business that uses bots for financial trading in Oregon is aware of the laws and abides by them.

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

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