German Lawmakers Draft HFT Rules

Germany’s ruling coalition has agreed on a set of principle that will allow Bafin, the country’s regulatory authority, to oversee high-frequency trading (HFT).

The proposed regulations seek to ban high-frequency traders from using strategies such as “fleeting orders,” where traders place a large number of orders without executing them in order to influence prices. Fines will also be levied for excessive use of trading systems, and a threshold will be set for minimum price movements.

High frequency trading is estimated to account for 40% of trading volume in Germany, where exchanges have already been moving towards preventing abuse of HFT. Since March, Deutsche Boerse has imposed extra fees on customers with unusually high order-to-trade ratios.

The German cabinet is expected to consider the draft law later this year.

Read more about the proposed legislation.

Photo credit:

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

Stay On Top Of The Debt Relief Industry's Regulatory Landscape

On November 6-7, 2022, Shipkevich PLLC will be hosting a Regulatory Workshop in Costa Mesa, California focusing on the fundamental regulatory issues facing debt relief professionals and how they can adapt.