EU Commission wants more scrutiny on High Frequency Trading

High frequency trading firms have been bought to regulators attention as the European Commission is pressing on stricter Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term to avoid market manipulation.

This could be the second blow European trading firms will face after France's Sarkozy is planning a 'special' tax on financial transactions. These moves could put continued pressure on the Euro zone being a un-favoured location by financial markets professionals.

High frequency trading has been blossoming as more and more markets ar traded online. HFT has its advantages as the system can act as a price maker and taker however certain strategies firms deploy have been the cause of sever problems in the markets. he Flash Crash Flash Crash The Flash Crash was a major stock market crash that happened on May 6, 2010 in which three major US indices crashed in the span of 36 minutes.In particular, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite fell nearly 9% before rebounding within minutes. The event differed from other crashes in that most losses were recovered.The crash was believed to be caused in part by Navinder Singh Sarao, a British financial trader. Sarao was later charged with spoofing algorithms, utilized j The Flash Crash was a major stock market crash that happened on May 6, 2010 in which three major US indices crashed in the span of 36 minutes.In particular, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite fell nearly 9% before rebounding within minutes. The event differed from other crashes in that most losses were recovered.The crash was believed to be caused in part by Navinder Singh Sarao, a British financial trader. Sarao was later charged with spoofing algorithms, utilized j Read this Term was the doings of the HFT trader and now regulators are keen to get some legislation in place. Sentiment is weak and there are indications of a double dip, regulators and central bankers are collectively working to revamp the markets and any new Lehman or Flash Crash will put a huge dent.

The commission report states that certain trading strategies used by HFT can cause market manipulation and these will be publicised and regulators will be able to catch on.

The UK has seen an influx of financial brokerages setting up their operations in London and it would be a huge hindrance to the local economies if firms look for new destinations to carry out their business.

Our next quarterly report will have an in-depth analysis of the High Frequency Trading environment Q$ will be available in mid January 2012.

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