A European Parliament report is calling for the Commission to toughen up its crackdown on high-frequency trading under MiFID II.
Last October the Commission proposed a draft law updating guidance to the four-year old MiFID (Markets in Financial Instruments Directive), with stricter rules for computerised trading one of the main subjects at stake.
However, MEP Markus Ferber, the rapporteur steering the measure through parliament, says in a report that the draft measures do not go far enough.
The report, quoted by Reuters, says banks should be banned from giving outside brokers direct access to markets. It also calls for orders to be made to stay in the market for at least 500 milliseconds before they can be cancelled, with traders fined for cancelling too many orders. In addition, all trading platforms should also have circuit breakers.
EU lawmaker wants draft securities law beefed up - Reuters