How Arlene McCarthy MEP Set her Sight on Trading Firms that Seek to Game the Market at HFT Conference
Golden Networking hosts the World's Most Influential High-Frequency Trading Conference Series, High Frequency Trading Leaders Forum 2013 London "Strategic and Tactical Insights for Investors, Speed Traders, Brokers and Exchanges", March 21 (http://www.High-Frequency-Trading.info).
- New York, NY (1888PressRelease) February 13, 2013 - Politicians in Europe have set their sight on firms that seek to game the market by gleaning information from rivals, quickly dipping in and out of markets with large volume-orders to see how other traders react. One of them, Arlene McCarthy, a Member of the European Parliament for North West England, will be joining other high-profile panelists at the most influential high-frequency trading conference in the world, Golden Networking's High Frequency Trading Leaders Forum 2013 (http://www.High-Frequency-Trading.info) "Strategic and Tactical Insights for Investors, Speed Traders, Brokers and Exchanges," London, March 21, conference bringing insightful keynote speeches and highly regarded panels to hundreds of attendees.
It is widely accepted in the market that not each order needs to lead to a trade, but the actual level of the order-to-trade ratio is hotly debated. Ms. McCarthy, a British center-left member of the European Parliament in charge of writing the upcoming continental-wide Market Abuse Directive, wants exchanges to fine traders that put in more than 250 orders for each actual trade. Markus Ferber, the German center-right lawmaker steering the reforms through the European Parliament, said last month orders should be forced to stay in the market for at least 500 milliseconds, or half a second, before they can be cancelled.
The world's fastest exchanges can currently trade in less than 100 microseconds, or one ten thousandth of a second, so a resting time of 500 milliseconds would mean these trades are being slowed down by a factor of 5,000. But the stock exchanges have now outlined their own measures, and have started fining high-frequency traders that exceed a set ratio of fake orders to real trades.
The LSE Group's Borsa Italiana has introduced a new charging model to punish firms that exceed an order to trade ratio of 100:1 and set a sliding scale of 0.01 to 0.025 euro fines per trade above the limit, depending on the severity of the breach. Under the new rules, firms sending 101 orders before producing a real trade each day will be fined whereas those that have a ratio of 99:1 or less will avoid censure. Investment banks, depending on their exposure to high-frequency traders, trade at about 4:1 and most hedge funds are also well below the stock exchange's threshold - though a handful may exceed it.
High-Frequency Trading Leaders Forum 2013 (http://www.High-Frequency-Trading.info) "Strategic and Tactical Insights for Investors, Speed Traders, Brokers and Exchanges" will bring insights for investors and speed traders, who need to protect and refine their competitive advantage in a world dominated by algorithmic and high-frequency trading. Recognized practitioners, regulators, experts, and strategists will return to High-Frequency Trading Leaders Forum 2013 to provide attendees with the information they are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.
Topics that will be discussed at High-Frequency Trading Leaders Forum 2013 include the movement toward emerging markets, which is increasingly attuned to the use of bots, and the regulatory environment, specifically how new technologies are changing the game, including a look at the upcoming regulatory changes that undoubtedly will be precipitated by Knight Capital's trading glitch.
High Frequency Trading Leaders Forum 2013 is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by calling +1-414-FORUMS0 or sending an email to info ( @ ) goldennetworking dot net.
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