Tuesday, October 25, 2016

A solution here? Give everyone the honest bot. C

Evaluating Germany’s Success in Regulating High-Frequency Trading: ...Although many countries have attempted to regulate the meteoric rise of high-frequency trading, no plan has been more ambitious than Germany’s High-Frequency Trading Act (HFT Act). Rather than regulate trading speed alone, the HFT Act targets the complex core of high-frequency trading: financial algorithms.
And there may be some evidence that the HFT Act is working—at least in part. In a recent paperNathan Coombs, a Research Fellow at the University of Edinburghgrappled with the complexities of trying to define, identify, and monitor well-guarded financial algorithms, and concluded that the HFT Act—although far from perfect—has had a notable degree of success. ...

E mail me if you have a problem defining the honest bot. 

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