EU Reins In High-Frequency Traders to Commodity Speculators Wednesday, January 15, 2014
Jan. 15 (Bloomberg) -- European Union lawmakers clinched a deal to toughen the bloc’s financial-market rulebook, backing sweeping measures that will put the brakes on high-frequency trading and curb speculation in commodity derivatives.
The overhaul, which will also push more activity on to regulated platforms, is designed to remedy deficiencies laid bare in the 2008 financial crisis. The accord ends more than two years of haggling over proposals from Michel Barnier, the EU’s financial services chief.
“These new rules will improve the way capital markets function to the benefit of the real economy,” Barnier said in an e-mailed statement after yesterday’s agreement in Strasbourg, France. “They are a key step towards establishing a safer, more open and more responsible financial system and restoring investor confidence.”
The rules on high-frequency trading, which include a so- called tick size regime limiting the minimum size of price movements on financial markets, will “slow down the pace of trading, increase transparency and ensure prices reflect current market conditions,” McCarthy said.
The deal also links market access for non-EU based firms to assessments by the European Commission of whether countries apply regulations that are as rigorous as those enforced in the bloc. This system would apply to investment services targeted at institutional rather than retail clients.
The deal closes “loopholes and ensures that trading, wherever appropriate, takes place on regulated platforms,” the Commission said. ------------------------------------------------------------
C,mon, ASX/ASIC The EU’ have recognized the unfairness and manipulation in it, Follow the EU lead and add to it, Not just HFT but, artificial over supply of shares to deliberately depress shares prices (true shorting).
*benefit of the real economy *restoring investor confidence *increase transparency *ensure prices reflect market conditions *Increase fairness
AGO Price at posting:
98.5¢ Sentiment: Buy Disclosure: Held
