European Legal Framework for Algorithmic and High Frequency Trading (Mifid 2 and MAR): A Global Approach to Managing the Risks of the Modern Trading Paradigm
9 Pages Posted: 1 Jul 2020
Date Written: June 8, 2020
Abstract
Algorithmic and high frequency trading use computer algorithms to execute strategies and the confluence of trends in computer hardware, programming, mathematical modeling, and financial innovation have pushed the limits of trading speed to unprecedented levels. Algorithms are fast and automatically spread disruptions through the financial system. Over the last decade, the ensuing systemic risk called for new regulations. This article attempts an early assessment of the new European legal framework (Mifid 2 and Market Abuse Regime) intended to tackle the technological risks of the modern trading paradigm.
Keywords: high frequency trading, Mifid 2, Market Abuse Regime
Suggested Citation: Suggested Citation