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07 October 2011

FN: High-speed traders warn ESMA over new rules


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Europe's most influential high-frequency trading firms have warned European regulators that a “one size fits all” policy on computer-driven trading would harm the quality of the market, and have called for greater flexibility over new trading rules.


Responding to a consultation paper on European guidelines for automated trading, the European Principal Traders Association, a lobby group representing 20 of Europe's largest proprietary trading firms, said: "Guidelines that impose unnecessarily burdensome compliance requirements on all firms would constitute a significant barrier to entry and competition for participants in electronic markets, and would thereby harm market quality".

The proposals included the adoption of "real-time monitoring" of trading platforms and "effective arrangements to constrain or halt trading", as well as rigorous testing procedures for new trading systems. The LSE said: "We broadly welcome the measures proposed by ESMA. We agree that these are the appropriate way to regulate these issues and that appropriately applied, should obviate the need for more intrusive and as yet unproven measures."

Full article (FN subscription required)



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