Germany Is Expected to Act to Increase Limits on High-Speed Trades

Germany Is Expected to Act to Increase Limits on High-Speed Trades

Germany Is Expected to Act to Increase Limits on High-Speed Trades

Germany intends to be one of the first countries to try to put the brakes on high-frequency trading, the computer-driven force that has been rattling stock markets across the globe.

Chancellor Angela Merkel’s government is expected to approve draft legislation on Wednesday that would impose additional controls on such trading. The proposed measures include requiring that all high-frequency traders be licensed, requiring clear labeling of all financial products traded by powerful algorithms without human intervention and limiting the number of orders that may be placed without a corresponding trade. Traders who violate the limits, which would be set once the law took effect, would face a fine.

“The goal of the German law is to limit the risks linked to high-frequency trading,” a government official said here Tuesday, speaking on condition of anonymity because the government had not yet approved the legislation…

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About yocijourney

God does not play dice
This entry was posted in Breaking News, Business, Finance, High Frequency Trading, knight capital, Regulatory Updates, World Economy and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

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