Skip to comments.MEPs approve ban on ultra-fast trading (European Union)
Posted on 10/29/2012 10:01:38 AM PDT by Olog-hai
Europe's first direct curbs on ultra-fast trading and investors who take bets on commodity prices moved a step nearer on Friday (26 October) when the European Parliament backed new securities rules.
Lawmakers want to tighten regulations on so-called high-frequency trading (HFT), which uses computers to dart in and out of markets in milliseconds and exploit tiny price differences, because they fear it makes markets more volatile. They are also cracking down on speculation in commodities markets in a bid to reduce big price swings.
The new rules include the introduction a synchronized clock for trading shares, bonds, commodities and other instruments across the EU so regulators can spot abuses more easily in a market where many exchanges and platforms trade the same shares. Share orders would have to remain in the market for at least 500 milliseconds, far longer than HFT traders stay at present. "That way, purely speculative business with high-frequency transactions will become unattractive," said German MEP Markus Ferber, the center-right lawmaker who is steering MiFID through Parliament.
(Excerpt) Read more at euractiv.com ...