Four months after the measure were introduced there is little evidence that much has changed
The introduction of algo-flagging in Germany exactly four
months ago has done little to curb controversial high-frequency
trading firms, experts have told FOW.
Since April 1, derivatives traders in Germany have been
required to identify each individual algorithmic order with a
key/flag, detailing in real time the entire decision process
behind that order.
Leading up to the deadline, some traders were concerned
about the potential negative implications of the flagging
requirement, the changes firms would have to make to come into
compliance and the impact on derivatives trading volumes at
Eurex, the main German futures market.
But four months in, there has been little complaints about
the effect of algo-flagging in Germany and, according to Eurex,
trading has not been affected.
"All our members fulfilled the new algo-flagging requirement
under the German HFT law from day one. We haven’t
experienced any issue since then," said Bernd Mack, head of
market structure, Eurex.
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