A European lobby group is pressing for evidence-based regulation of high frequency trading (HFT), Financial News reports. In a letter to the International Organization of Securities Commissions, the Futures Industry Association’s (FIA) Principal Traders Group (PTG) and European Principal Traders Association (EPTA) has suggested mandatory circuit breakers that could briefly pause trading on exchanges, adds GFS News.
The lobby group has recommended using a position limits system used by the Eurex exchange, where product-specific price corridors are set. It also suggests that all trading venues use automated means to briefly pause their market in the event that a circuit breaker is triggered.
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