The ICMA algo taskforce (Taskforce) member response is based on consensus view and relates solely to bonds. The Taskforce represents buy-side and sell-side investment firms, trading venues and software and technology providers.
The motivation for regulating
algo trading is the mitigation of risks such as market-wide disruption
or destabilisation. However, unlike equity markets, the bond market use
of technology often does not fit the execution algorithm definition and
does not carry the same systemic risk or disruption potential. Even if
the terminology of an ‘algorithm’ is used, it is often automations
without the ability to generate new orders / child orders (parent orders
sliced into smaller 'child' orders electronically through algorithms)
or to trigger executions.
Full response
ICMA
© ICMA
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article