ECB warns of high-speed trading

Discussion in 'Professional Trading' started by ASusilovic, Feb 25, 2011.

  1. Automated dealing could “trigger a number of risks for orderly trading and financial stability”, the European Central Bank has warned, in an unusual intervention in the debate over the role of “high-frequency” trading in markets.

    The comments come as the growth of high-frequency trading shows no sign of abating with exchanges continuing to upgrade trading systems to accommodate such traders.

    ...

    The bank also said the high number of orders generated by HFT “may put market infrastructures under severe stress”.

    While such traders were often mentioned as providers of liquidity in the markets, the ECB said “unexpected stress situations may lead them to a sudden withdrawal with lasting liquidity disruption”.

    http://www.ft.com/cms/s/0/e23ddc24-4044-11e0-9140-00144feabdc0.html#axzz1EhvtFspg

    :cool:
     
  2. ammo

    ammo

    thanks,welcome back