23 May 2018
https://aciworldwide.webex.com

Germany's HFT licensing plans draw market criticism

15 January 2013  |  5425 views  |  0 German flag

High-frequency traders and exchange operators have spoken out against German government plans to make HFT practitioners obtain prior authorisation to operate.

Although the EC is currently in the process of tightening rules on computer algorithmic trading as part of its MiFID overhaul, the German government has taken its own, tougher, steps.

With parliament's finance committee set for a hearing on the draft law tomorrow, the FIA European Principal Traders Association (EPTA) has backed many of the proposals, including requirements on minimum tick sizes, enhanced transparency and order-to-trade ratios.

However, the association has warned that the plan to introduce a licensing system for high-frequency traders "would have detrimental effect on trading firms based in the EU that cannot receive MiFID authorisation as national regulation does not provide the possibility to apply for a MiFID passport."

Continues a statement: "Not only would this drive liquidity away by excluding EU and US trading firms to trade on German markets it also pushes trading to non-transparent dark pools which is contrary to one of the main objectives of EU regulation".

With around 70% of trading on the Xetra cash equities platform involving foreign players, Deutsche Börse is also against the plan, with MD Rainer Riess telling the Financial Times that the operator is "very concerned" and that a registration requirement "would be an own goal for Germany's financial centre".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Australia plans 'kill switches' to curb HFT risks

Australia plans 'kill switches' to curb HFT risks

21 November 2012  |  6448 views  |  0 comments | 3 tweets
No link between HFT and market manipulation - research

No link between HFT and market manipulation - research

13 November 2012  |  9225 views  |  12 comments | 7 tweets | 5 linkedin
Germany preps HFT rules

Germany preps HFT rules

26 September 2012  |  5691 views  |  0 comments
Study questions MiFID II HFT plans

Study questions MiFID II HFT plans

03 September 2012  |  7281 views  |  0 comments
HFT in the dock as another trading error hits exchanges

HFT in the dock as another trading error hits exchanges

23 August 2012  |  11898 views  |  0 comments
European parliamentarian demands tougher crackdown on HFT

European parliamentarian demands tougher crackdown on HFT

26 March 2012  |  8004 views  |  0 comments
Exchange competition and HFT get hostile reception in UK market review

Exchange competition and HFT get hostile reception in UK market review

29 February 2012  |  7350 views  |  0 comments
Ex-City minister calls for HFT probe

Ex-City minister calls for HFT probe

15 August 2011  |  6810 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.com/news/mobile-firstVisit aciworldwide.webex.com

Top topics

Most viewed Most shared
PayPal agrees $2.2 billion deal for iZettlePayPal agrees $2.2 billion deal for iZettl...
9936 views comments | 16 tweets | 28 linkedin
BBVA begins global roll-out of unified mobile appBBVA begins global roll-out of unified mob...
8735 views comments | 6 tweets | 5 linkedin
Japanese banks join quantum computing hubJapanese banks join quantum computing hub
7401 views comments | 8 tweets | 5 linkedin
SEC lures wannabe crypto investors with fake ICO siteSEC lures wannabe crypto investors with fa...
6911 views comments | 7 tweets | 11 linkedin
Digital banking transformation creating new systemic risksDigital banking transformation creating ne...
6686 views comments | 17 tweets | 22 linkedin

Featured job

Basic c. EUR 120K OTE c. EUR 250K plus full benefi...
Paris (preferred) or London

Find your next job