NYSE REVIEWS PROGRAM TRADING
The <New York Stock Exchange> said it
is undertaking a review of the long-term effects on securities
markets of computer-driven trading techniques known as program
trading.
    The NYSE said, "The study will review major new trading
techniques involving programmed portfolio hedging and index
arbitrage for their potential benefits and risks to the
financial system.  It will also explore the regulatory
implications of these trading techniques and whether their
increased use could possibly lead to market abuse."
    The exchange said a final report is expected before the end
of 1987.  It said program trading is becoming increasingly
important as a market factor.
 Reuter
