Tuesday, September 25, 2012

German High-Frequency Bill to Hit Hedge Funds




Chancellor Angela Merkel’s Cabinet will vote on a bill tomorrow that limits high-frequency trading even for market participants outside Germany and requires automated orders to be marked as such, a government official told Bloomberg.

High-frequency traders will have to seek authorization and will be supervised under the legislation proposal, the official told reporters in Berlin today on condition of anonymity because the bill has not yet been published. High-frequency trade will be curbed and market abuse will be punished, he said in Berlin.

Own-account high-frequency traders such as hedge funds, which don’t need authorization at present, will be covered by the new legislation, the official said. That would affect market participants borrowing access to electronic trading systems from others….

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