Registered: Sep 2011
05-03-12 08:46 PM
Europe to vote on new HFT regulations July9th:
The European Parliament will vote on July 9 to ratify the European Commission's controversial new regulatory proposals, including plans to slow down high-speed traders.
Markus Ferber, the German centre-right lawmaker steering the reforms through the European Parliament, wants trading orders to be forced to stay in the market for at least 500 milliseconds, or half a second, before they can be cancelled.
The world's fastest exchanges currently trade in less than 100 microseconds, or one ten thousandth of a second, so a resting time of 500 milliseconds would mean these trades were being slowed down by a factor of 5,000.
The proposals have prompted concern among the traders who argue they are simply using technology to glean a competitive advantage, something that traders have always done.