13 February 2016

European authorities get two months to affirm HFT governance plans

24 February 2012  |  7264 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)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

21 February, 2012
10 February, 2012
20 October, 2011
13 October, 2011
28 September, 2011
12 September, 2011
08 September, 2011
15 August, 2011
08 July, 2011
10 December, 2010
24 November, 2010
12 October, 2010

Related company news

 

Top topics

Most viewed Most shared
UK sets out open banking API frameworkUK sets out open banking API framework
16320 views comments | 106 tweets | 91 linkedin
Deutsche Bank calls for co-operation with fintech firms on B2B servicesDeutsche Bank calls for co-operation with...
9075 views comments | 30 tweets | 30 linkedin
How to accelerate your fintech startupHow to accelerate your fintech startup
8634 views comments | 35 tweets | 10 linkedin
Is Paym a failure?Is Paym a failure?
7195 views 16 comments | 23 tweets | 16 linkedin
Visa issues API to offer consumer control over card transactionsVisa issues API to offer consumer control...
6570 views comments | 17 tweets | 28 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job