GERMANY CHANGES THE GAME - Speed Limit” for High Frequency Traders

Discussion in 'Wall St. News' started by THE-BEAKER, Aug 15, 2012.

  1. looks like im right after all


    “Speed Limit” for High Frequency Traders –
    German Government Publishes Draft Legislation to
    Regulate Algorithmic Traders and Trading Strategies on
    German Trading Venues
    ......................................................................................................................................................................................
    For many foreigners, Germany is famous for its “autobahns”, where drivers are
    usually permitted to drive as fast as their cars and traffic allow and without being
    restricted of an official speed limit. So far, this also has been true for using
    trading venues in Germany. However, the German Government now plans to
    introduce a “speed limit” for electronic trading on its regulated markets and
    multilateral trading facilities. A new draft piece of legislation now purports to
    introduce for the first time a dedicated regulatory framework for algorithmic
    trading on German trading venues and high frequency traders would be subject
    to a license requirement with, and supervision by, the German Financial
    Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht;
    “BaFin”).

    http://www.shearman.com/files/Uploads/Documents/Speed_limit_for_HFT.pdf
     
  2. Pippi436

    Pippi436

    Most Eurex corporations are in Switzerland by now, if im not mistaken. The only exchange of note affected by this would be Xetra, i suppose.
     
  3. the main eurex exchange is in frankfurt which last time i looked was in germany
     

  4. frankfurt has now relocated to singapore
     
  5. The Old Empire fights back - nobody benefits from this except the old school banks and exchanges. The fact that they benefit from this means it's bad news for pretty much everybody else.

    Apart from that, the document is ridiculous:

    "A firm engaged in algorithmic trading must organize its trading systems in such a way that market distortions cannot occur."

    Perhaps someone should explain Turing to whoever wrote that, as it is demonstrably impossible to comply with.

    Obladi oblada.
     
  6. [​IMG]