European Vote on New HFT Regulations July 9th

Discussion in 'Wall St. News' started by Options12, May 3, 2012.

  1. Options12

    Options12 Guest

    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.

  2. i wager a pound they dont pass this.

    once the hft/algo mob ( the usual suspects - rsj getco ) get wind of this and complain, whinge and backhander the right people in the chain then funnily enough nothing will happen.

    cancel their cheating front running business model.

    i dont think so.

    naive to believe this will happen.
  3. insidertraders

    insidertraders Guest

    half a second won't make any difference. what a joke these laws are.

    more like 5 minutes or don't bother putting a bid or sell and taking it off. the market is just like an auction, bids and sell orders are BINDING and you better have the cash t o pay for it and better have the shares to deliver the present the market is a joke. borderline scam market. virtual market.

    and you better have the cash at close to settle. or this market is a virtual video game.
  4. insidertraders

    insidertraders Guest

    what is so controversial about it.

    either you have fair market or b.s. market.

    The reason these HFT have been tolerated is they are like 70% of exchange fee revenues and fees the SEC receives. everytime a trade goes through HFT pays the SEC fees. call the SEC fees now if volume drops 70% these brokers, exchanges and SEC stand to lose a lot of 'revenues'--it's about the money.
  5. insidertraders

    insidertraders Guest

    The exchange like the NYSE and CME were 'non-profits'

    and tokyo stock exchange is non-profit.

    there is a reason they are non-profit exchanges. with for-profit exhange, they sell out to market participants who contribute the most revenue whic h are the HFT machines and market makers...
  6. dmdunick


    Wow, I wish I could afford that type of speed.
  7. Not sure if they will stop the HFT, fee them probably, but stop i doubt it
  8. Occam


  9. Occam


    A pity, as I'd be eager to see what a 1/2 second minimum would do, especially if there were no exemptions (excemptions being a major problem with almost all quoting rules/fees/etc. in the past -- many exchanges, and perhaps even some politicians, seem to want to give blanket exemptions to certain large firms, making the rules worse-than-useless in the end).

    My guess is that a 1/2 second minimum for quotable orders would increase "usable" liquidity, not decrease it as some detractors (generally HFT firms themselves) have claimed. But who knows for sure -- it would have been nice if the Europeans had given it a shot to see what happens, in practice.
  10. Honestly, the Europeans imposing this rule on their exchanges, will be good for the US exchanges (in a way). Foreign HFT firms will start playing their games on the US exchanges, bringing more money into the US. However, I am sure that money will leave as quick as it came, and small investors and traders will be screwed over as usual.
    #10     Jul 12, 2012