Regulations Result in Changing Market Conditions – HFT and MIFID II
by
Andrew Saks McLeod
High frequency trading has been a buzz word stinging the financial markets since programme trading began to take precedence over the human touch. Technological enhancements over the last 40 years have meant that the markets are becoming more developed as a logical and systematic framework is behind them.
There are those who are for or against this new development, however, as the markets evolve we learn more about the pros and cons of electronic trading. Undoubtedly computer or programme trading has had its fair share of coverage for more bad reasons than good over the last two years. This has come to the attention of the regulators, who are exploring this phenomena and looking at ways to manage high frequency trading (HFT) in the modern trading environment.
MIFID II is a follow up from the inter-Europe financial markets directive that was implemented in 2007. MIFID covers specific aspects relating to HFT. Let’s explore.
What Exactly is High Frequency Trading?
High frequency trading is defined as a program Trading Platform that uses powerful computers to transact a large number of orders at very high speeds. High-frequency trading uses complex algorithms to analyse multiple markets and execute orders based on market conditions.
Typically, the traders with the fastest execution speeds will be more profitable than traders with slower execution speeds. (source: Investopedia)
Should HFT take the blame for the above? The SEC conducted a detailed examination of what caused the flash crash, and yes there is some blame that can be attributed to the way one particular firm was placing orders, however it is unfair to give high frequency trading the lion’s share of the blame.
Stephane Leroy, Head of Sales & Marketing at QuantHouse S&P Capital IQ simply believes in strong measures to truly understand HFT, he says “Risk Management technologies are here for that” when looking at preventing another flash crash.
This is an excerpt from a detailed report on MiFID and HFT in the Forex Magnates Industry Report for Q4 2012
High frequency trading has been a buzz word stinging the financial markets since programme trading began to take precedence over the human touch. Technological enhancements over the last 40 years have meant that the markets are becoming more developed as a logical and systematic framework is behind them.
There are those who are for or against this new development, however, as the markets evolve we learn more about the pros and cons of electronic trading. Undoubtedly computer or programme trading has had its fair share of coverage for more bad reasons than good over the last two years. This has come to the attention of the regulators, who are exploring this phenomena and looking at ways to manage high frequency trading (HFT) in the modern trading environment.
MIFID II is a follow up from the inter-Europe financial markets directive that was implemented in 2007. MIFID covers specific aspects relating to HFT. Let’s explore.
What Exactly is High Frequency Trading?
High frequency trading is defined as a program Trading Platform that uses powerful computers to transact a large number of orders at very high speeds. High-frequency trading uses complex algorithms to analyse multiple markets and execute orders based on market conditions.
Typically, the traders with the fastest execution speeds will be more profitable than traders with slower execution speeds. (source: Investopedia)
Should HFT take the blame for the above? The SEC conducted a detailed examination of what caused the flash crash, and yes there is some blame that can be attributed to the way one particular firm was placing orders, however it is unfair to give high frequency trading the lion’s share of the blame.
Stephane Leroy, Head of Sales & Marketing at QuantHouse S&P Capital IQ simply believes in strong measures to truly understand HFT, he says “Risk Management technologies are here for that” when looking at preventing another flash crash.
This is an excerpt from a detailed report on MiFID and HFT in the Forex Magnates Industry Report for Q4 2012
Cboe to End Crypto Exchange in Plans to Consolidate Services
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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