Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Germany passes bill to curb high frequency trading

Monday, October 08, 2012

Benedicte Gravrand, Opalesque Geneva – On 26 September 2012, the Federal Government of Germany published its official draft law to reduce the risks arising from high frequency trading (HFT). The HFT-Act constitutes a revision of the draft act published by the German Ministry of Finance dated 29 July 2012.

The new bill would limit high-frequency trading even for market participants outside Germany and requires automated orders to be marked as such, Bloomberg reported. High-frequency traders will have to seek authorization and will be supervised under the legislation proposal, an official told reporters in Berlin. High-frequency trade will be curbed and market abuse will be punished, he said. Hedge funds, which normally don’t need authorisation, will be covered by the new legislation.

According to international law firm Simmons & Simmons, some significant aspects of the HFT-Act and its amendments include:

New authorisation requirement: All entities which acquire or sell financial instruments on own account as a direct or indirect participant of a German organised market or multilateral trading facility and which apply an algorithmic trading strategy are subject to the new authorisation requirement. The Act provides for a transition phase......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably