FIA EPTA Blog
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High Frequency Trading: What’s the big deal?
This is the question asked by Evangelos Benos, from the Bank of England’s Financial Markets Infrastructure Division, on the Bank’s staff blog (Bank Underground). As well as providing a useful summary of the evolution of HFT, the main focus of the blog is a discussion of the overall impact of HFT on market quality. His conclusion? That while there are “some aspects of HFT activity that are still contentious… the inescapable conclusion that so far emerges is that HFT has mostly had a positive impact on market functioning.”
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Further evidence that new rules could threaten market liquidity in Europe
A preliminary research report by three professors at the Toulouse School of Economics[1] has raised concerns over the impact impending regulations could have on market liquidity.
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A vote of thanks as Remco Lenterman resigns as Chairman
We're sad to say that Remco Lenterman is stepping down from his role as Chairman of FIA EPTA following his departure from IMC.
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Trading in control
The Netherlands Authority for the Financial Markets recently released a report on its expectations around the current and future use of internal controls for automated trading. This is an important theme for FIA EPTA and we are pleased to see that the AFM's report sets clear principles and shows the importance of industry best practice and the principles of proportionality.
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Tackling the risks of algorithmic trading
Since the introduction of automated trading, much has changed in the operation of our markets: how to improve market structure and implement safeguards has been a key topic of conversation for both market participants and regulators for some time. This is why the report by the Senior Supervisor’s Group (a group that consists mostly of Central Banks) on algorithmic and high frequency trading makes for curious reading.
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“Market liquidity second greatest threat to financial stability”
The Bank of England has brought to the attention of mainstream audiences a topic close to our hearts: the consequences a reduction in liquidity would have on the economy.
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Derivatives under MiFID II: Time for equal access
Verena Ross, Executive Director of ESMA, recently delivered a keynote speech to the ABA/Law Society Capital Markets Conference in London. Her speech focused on the importance of increasing transparency in MiFID II “in a manner that does not 'damage' but instead improves the functioning of the market,” making particular mention of “those instruments, such as derivatives, that are still far from being traded in a fully transparent market.”
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Markets: the engine of the economy
With the publication of the recent Bank of England report demonstrating that high frequency trading makes pricing more accurate in the markets it seems a good time to consider not only why this is good for the markets, but why, in fact, it benefits the economy as a whole.
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Picture the financial markets in 2022: will MiFID II have improved liquidity?
t’s February 2022. MiFID II legislation has been in force for five years. Five years which have reshaped our financial market structure. How does the market look?
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Flash in the pan?
A lot can change in a year. This time last year, the publication of Michael Lewis’s Flash Boys book created something of a storm.
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