The Futures Industry Association (“FIA”) and FIA Europe published a report on MiFID II technical advice issued by the European Securities Markets Authorities (“ESMA”). The report focused on high-frequency and algorithmic trading and provided proposed definitions of those terms.
According to the report, MiFID II aims to develop “considerably stronger rules” concerning high-frequency trading and algorithmic trading to ensure that firms conducting these activities are subject to appropriate controls and oversight. The report also obligates firms to follow a consistent set of rules regarding software and risk management.
Fourth Special Report: Algorithmic and High Frequency Trading: