France urges tougher rules on high frequency trade

France financial market regulator urged the European Union to toughen its plan overhaul of rules and highlight the need for more oversight of high frequency trading and new trading platforms. Proposals presented in October by the EU says that it is “insufficient” in ways that can cause consequences. It is important to move toward a system of centralized surveillance of order and transaction on the markets. The AMF state that the priorities for the market is seeking new plans for change.

High frequency trading has increased its regulatory scrutiny as the crash in May has caused Dow Jones Industrial Average to lose almost 1,000 points. The EU proposed measures for firms to offer high frequency trading services the control to ensure clients a direct access to the market. The EU is also seeking to push dark pool trading into a new form of regulated platform known as OTF. Dark pools are companies that do not display their prices in advance, and they are criticized by regulators for their lack of transparency in price volatility.

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