HFT Firms That Make Markets in Treasuries Face New SEC Rules

High-frequency trading firms that are responsible for a major chunk of transactions in U.S. Treasuries face new rules and tougher oversight from the U.S. Securities and Exchange Commission.

Firms that haven’t historically registered with the agency would be required to do so and report their trades to officials, according to new regulations proposed on Monday by Wall Street’s main watchdog. Companies that perform functions such as providing liquidity to the market will need to comply, the SEC said.

“Requiring all firms that regularly make markets, or otherwise perform important liquidity-providing roles, to register as dealers or government securities dealers ...