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Roland99

(53,345 posts) Wed Sep 26, 2012, 03:53 PM Sep 2012

Germany to Tap Brakes On High-Speed Trading

Source: Wall St. Journal

BERLIN—Germany is set to advance a bill Wednesday imposing a spate of new rules on high-frequency trading, escalating Europe's sweeping response to concerns that speedy traders have brought instability to the markets.

The measure seeks to require traders to register with Germany's Federal Financial Supervisory Authority, collect fees from those who use high-speed trading systems excessively, and force stock markets to install circuit breakers that can interrupt trading if a problem is detected.

...

These include the requirement for orders to rest on the exchange order book for a minimum of half a second—an eternity for firms accustomed to trading in millionths of a second—before they can be canceled or modified, and penalties for high cancellation rates.

On Aug. 1, France introduced a high-frequency trading tax as one of the three levies that comprise its financial-transaction-tax package.

Good luck getting anything like that done here in the U.S.

7 replies

= new reply since forum marked as read

Highlight:

Germany to Tap Brakes On High-Speed Trading (Original Post) Roland99 Sep 2012 OP

Doesn't seem like much, but a least they're doing something. Lasher Sep 2012 #1

As mentioned dipsydoodle Sep 2012 #2

Put the brakes on Merkel saidsimplesimon Sep 2012 #3

What does slowing trading have to do with austerity measures? JDPriestly Sep 2012 #4

High speed trading is one of the ways the parasitic finance sector has used to steal money and Vincardog Sep 2012 #5

Tax all market trades Kolesar Sep 2012 #6

Agreed. Take that 10 cents every time a high speed trader front runs a transaction and it Vincardog Sep 2012 #7

Lasher

(29,665 posts)

1. Doesn't seem like much, but a least they're doing something.

Reply to Roland99 (Original post)

Wed Sep 26, 2012, 04:01 PM

Sep 2012

Bankers are out of control.

dipsydoodle

(42,239 posts)

2. As mentioned

Reply to Roland99 (Original post)

Wed Sep 26, 2012, 04:05 PM

Sep 2012

France had already led the field with this.

saidsimplesimon

(7,888 posts)

3. Put the brakes on Merkel

Reply to Roland99 (Original post)

Wed Sep 26, 2012, 04:07 PM

Sep 2012

When will Merkel realize that austerity measures are akin to committing EU "suicide"? Oh well, another conservative, another crash....imho

JDPriestly

(57,936 posts)

4. What does slowing trading have to do with austerity measures?

Reply to saidsimplesimon (Reply #3)

Wed Sep 26, 2012, 04:39 PM

Sep 2012

Anything? I don't see a connection. Is there one?

Vincardog

(20,234 posts)

5. High speed trading is one of the ways the parasitic finance sector has used to steal money and

Reply to JDPriestly (Reply #4)

Wed Sep 26, 2012, 04:57 PM

Sep 2012

kill the real economy. If it can be taxed and restricted it can slow the death of our economic system by way of "austerity".
Austerity is one of the ways the radical right wants to use to eliminate any Government benefit to People other than the Economic Elites.

Kolesar

(31,182 posts)

6. Tax all market trades

Reply to Vincardog (Reply #5)

Wed Sep 26, 2012, 05:40 PM

Sep 2012

A ten cent tax per trade isn't going to have much effect on me or the mutual fund managers running the funds in our 401ks.

Vincardog

(20,234 posts)

7. Agreed. Take that 10 cents every time a high speed trader front runs a transaction and it

Reply to Kolesar (Reply #6)

Wed Sep 26, 2012, 10:55 PM

Sep 2012

will add up quickly.

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