Senior EU lawmaker looks to curb high-frequency trading

03/25/2012 | Financial Times (tiered subscription model) · Reuters

Markus Ferber, an EU lawmaker, says exchanges should levy fines on traders who cancel many of their orders to curb potential abuses by high-frequency traders. "We need a deceleration of high-frequency trade, more retail investor protection and containment of excessive speculation," Ferber said. He also called for a "minimum holding period" for trading stocks and derivatives. Remco Lenterman, chairman of the FIA European Principal Traders Association, has raised concerns about the proposals. Introducing resting periods "could result in a decrease in liquidity by hampering effective risk management," according to FIA.

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Financial Times (tiered subscription model) · Reuters

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