New York firm faces China investigation over $17M advanced trading hardware smuggling — accused of installing customized processors and networking hardware at Shanghai Futures Exchange

Tower Research Capital, a New York HFT firm, is being investigated by Chinese authorities for allegedly smuggling $17 million worth of advanced trading hardware into the country to use at the Shanghai Futures Exchange. The firm is accused of potentially installing unauthorized customized processors and networking hardware. If found guilty, Tower could face significant fines and criminal charges. The SHFE reportedly only allows certified brokers to connect directly to its servers, aiming for fair trading conditions. This incident occurs amidst increased U.S. hardware export controls and Chinese regulatory efforts to prevent market manipulation.