25 May 2017
Visit cib.db.com

European authorities get two months to affirm HFT governance plans

24 February 2012  |  7638 views  |  0 Man writing graphs on glass wall

The European Securities and Markets Authority (Esma) has given national securities watchdogs two months to declare their plans for enforcing new rules on scrutinising high frequency trading activities.

Esma published its final 'Guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities' in December. The proposals call on exchange trading venues to make arrangements for monitoring high frequency traders and to put in place mechanisms for throttling trading activity during times of high market stress.

Trading firms would be expected to assess the adequacy of pre-trade controls and IT at member firms, while investors who use algorithmic trading strategies would be required to have appropriate governance procedures in place for developing, buying and testing the technology.

Following its publication in December, the European body has officially translated the proposed rules into all the official languages of the EU, triggering a transitional period of two months within which national supervisors have to declare whether they intend to comply with the guidelines.

According to Esma regulations, national supervisors have to make every effort to comply with the guidelines. Those who decline will have to explain the reasons for non-compliance which would be made public by Esma.

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

HFT no threat to financial stability - Swedish watchdog

HFT no threat to financial stability - Swedish watchdog

21 February 2012  |  7299 views  |  0 comments
CFTC creates HFT subcommittee

CFTC creates HFT subcommittee

10 February 2012  |  6124 views  |  0 comments
Securities watchdogs to step up HFT surveillance

Securities watchdogs to step up HFT surveillance

20 October 2011  |  6553 views  |  0 comments
European exchanges voice concern over HFT consultation's scope

European exchanges voice concern over HFT consultation's scope

13 October 2011  |  5881 views  |  0 comments
HFT is changing the ecology of the foreign exchange markets - BIS

HFT is changing the ecology of the foreign exchange markets - BIS

28 September 2011  |  6693 views  |  0 comments
Institutional investors troubled by HFT - survey

Institutional investors troubled by HFT - survey

12 September 2011  |  6274 views  |  0 comments
Robot traders set to oust humans from the trading floor

Robot traders set to oust humans from the trading floor

08 September 2011  |  11613 views  |  2 comments
Ex-City minister calls for HFT probe

Ex-City minister calls for HFT probe

15 August 2011  |  6559 views  |  0 comments
Top Bank official calls for speed limits on high frequency trading

Top Bank official calls for speed limits on high frequency trading

08 July 2011  |  7474 views  |  1 comments
Dutch regulators see positive side of HFT

Dutch regulators see positive side of HFT

10 December 2010  |  9919 views  |  0 comments
UK government to study economic impact of High Frequency Trading

UK government to study economic impact of High Frequency Trading

24 November 2010  |  10842 views  |  0 comments
European Commissioner takes aim at HFT

European Commissioner takes aim at HFT

12 October 2010  |  8318 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.events.sap.comVisit www.capgemini.com/worldreportsvisit dh.com

Top topics

Most viewed Most shared
Banks must get on AI bandwagon now – new Finextra researchBanks must get on AI bandwagon now – new F...
9173 views comments | 22 tweets | 31 linkedin
Google and PayPal partner for mobile shopping by fingerprintGoogle and PayPal partner for mobile shopp...
9147 views comments | 28 tweets | 28 linkedin
Twins fool HSBC voice biometrics - BBCTwins fool HSBC voice biometrics - BBC
8922 views comments | 21 tweets | 24 linkedin
BBVA brings info and payments to social and messaging networksBBVA brings info and payments to social an...
6741 views comments | 11 tweets | 17 linkedin
UK SMEs missing out on £1.6bn by not accepting 'next gen' paymentsUK SMEs missing out on £1.6bn by not...
6628 views comments | 24 tweets | 18 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job