Probe into Algorithmic Trading Puts U.S. Hedge Fund in Spotlight

(Beijing) – Leading U.S. hedge fund Citadel LLC is in the spotlight after one of its trading accounts in China was frozen by a stock exchange amid tightening scrutiny of stock-price manipulation related to computer-driven, high-frequency trading.

Citadel's account was one of 28 suspended by the Shanghai and Shenzhen stock exchanges in early August. The accounts were closed for three months amid regulators' suspicions that they have been involved in algorithmic trading in a way that distorted the market. Another 14 accounts were also disciplined by the exchanges, but remained active.