The big brother is watching you If you do not have an license to make money, then no money making. It is reserved for the ones that already have the money
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
This article was originally published at the Fidessa Regulation Matters blog, by Christian Voigt
__________________________________________
Managing algorithmic trading will become more difficult in the future. Regulators have already suggested in recent drafts of MiFID II and the German HFT Act that algos need to be registered/earmarked and their functionality reported to the competent authority if requested.
The European Parliament (EP) takes the requirement a step further in its draft in Article 10a in MAR. Here, market abuse is defined as any case where an algo or material change to an algo is not reported to the competent authority and that this algo has subsequently had a detrimental impact on the market. Interestingly, the other two instances of market abuse – insider dealing and market manipulation – need to be committed intentionally. The EP’s approach with respect to algos is far less forgiving, with no mention of intent when talking about the failure to report a change in an algo.
Regardless of appropriateness, it would certainly provide a strong incentive for any broker to flood its regulator with large numbers of algo change notices just to get an imprimatur. Whether this makes markets safer is open to question.
__________________________________________
Comment? Does it really need a comment?