UK report rejects EU plan to curb high-speed trading

EurActiv reported that a UK government-sponsored paper has said in October 2012 that European Union plans to clamp down on trading shares faster than the blink of an eye could damage market efficiency and reduce liquidity, rejecting a key European Parliament committee proposal to force traders to hold shares for longer.

The European Commission promised to wage war against speculation on commodity markets when it tabled a revision of its Markets in Financial Instruments Directive (MiFID) in October 2011.

Separately, the European Parliament voted on the 26 October 2012 on the MiFID II proposed legislation. MEPs tightened up the proposed rules on high-frequency trading.

• Primary Source

ESO: Background information: MiFID 2 - correcting unintended consequences http://www.europeansources.info/record/mifid-2-correcting-unintended-consequences/

UK: BIS: Foresight: The future of computer trading in financial markets http://www.bis.gov.uk/assets/foresight/docs/computer-trading/12-1086-future-of-computer-trading-in-financial-markets-report.pdf

UK: BIS: Foresight: The future of computer trading in financial markets. Executive summary http://www.bis.gov.uk/assets/foresight/docs/computer-trading/12-1087-future-of-computer-trading-in-financial-markets-summary.pdf

ESO: Background information: EU lawmaker turns screw on ultra-fast trading http://www.europeansources.info/record/eu-lawmaker-turns-screw-on-ultra-fast-trading/

European Commission: DG Internal Market and Services: Single Market for Services: Securities Investment services and regulated markets (MiFID): Investment Services Directive http://ec.europa.eu/internal_market/securities/isd/mifid_en.htm

Wikipedia: High-frequency trading http://en.wikipedia.org/wiki/High-frequency_trading

EurActiv, 29.10.12: MEPs approve ban on ultrafast trading http://www.euractiv.com/euro-finance/meps-green-light-ban-ultrafast-t-news-515711

EP, 26.10.12: Tougher rules to protect investors and curb high-frequency trading http://www.europarl.europa.eu/news/en/pressroom/content/20121024IPR54367/

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