Trichet urges national regulators greater HFT scrutiny

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High-Frequency Trading Leaders Forum 2011

European Central Bank president Jean-Claude Trichet has urged regulators to look into market stability risks posed by high frequency traders.

In a speech hailing new international regulations, Trichet urged national regulators not to relent in their implementation of a number of international standards.

Among the Basel III capital requirements and the surcharge proposed for the world’s biggest banks, Trichet used a speech at the Eurofi conference on Thursday to highlight a number of possible improvements for global policymakers.

Regulators should establish a harmonised framework to act in a coordinated international manner, he said. They should also increase transparency “across the board” and should look to reduce the risks posed by financial and technological innovations.

“Moreover, we need to better identify, monitor and assess the potential threat to market stability posed by high frequency trading,” he said.

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