Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

EU promises crackdown on high frequency trading

EU promises crackdown on high frequency trading

European regulators have promised the ‘strictest regulations for high frequency trading in the world’ ahead of the approval of a vote on Markets in Financial Instruments Directive (Mifid) later today.

While the rules have been in development  for years, the issue has been lent impetus by the publication of Flash Boys by Michael Lewis, a comprehensive survey of the sector’s development.

The draft rules, which will go before the European Parliament today, will require algorithms to be tested and monitored by regulators and ensure order increments do not fall below a certain size.  

Rules which would have installed a minimum holding period, making it difficult for trading programmes to operate, were dropped last year, however.

Michael Lewis’ Flash Boys has drawn a spotlight to the hitherto secretive world of high frequency trading, blamed for the lightning speed of the flash crash of 2010.

Lewis claimed that the sector was ripping off small shareholders by exploiting millisecond response times to affect the price investors were able to secure in the market.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter