Germany to Tap Brakes On High-Speed Trading

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.

The new rules, which also grant the regulator the power to compel firms to detail their trading practices, will apply to anyone trading in Germany, no matter where they are based. If it is approved in cabinet, the bill will move to the Bundestag, the lower house of the German Parliament. The bill is widely expected to pass later this year.

A senior official from the German finance ministry told reporters the agency estimates up to 40% of share sales in Germany can be attributed to high-speed trading.

Read Full Article from Wall Street Journal

- Posted: 2012-09-27 14:54:24

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