Monday, 3 September 2012

UK: computer trading in financial markets - policy proposal evaluation

In November 2010 the Department for Business, Innovation and Skills launched a project to consider the future of computer trading in financial markets: see here. As part of this project a working paper has recently been published titled 'Economic impact assessments on MiFID II policy measures related to computer trading in financial markets': see here (pdf). The paper considers evidence evaluating the likely effectiveness and benefit of various policy proposals including notification of algorithms, circuit breakers, minimum tick size requirements, market maker obligations, minimum resting times and minimum order-to-execution ratios.

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