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

See all articles by Tilen Cuk

Tilen Cuk

affiliation not provided to SSRN

Arnaud van Waeyenberge

HEC Paris - Tax & Law

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

Cuk, Tilen and van Waeyenberge, Arnaud, 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 (June 8, 2020). Available at SSRN: https://ssrn.com/abstract=3622307 or http://dx.doi.org/10.2139/ssrn.3622307

Tilen Cuk

affiliation not provided to SSRN

Arnaud Van Waeyenberge (Contact Author)

HEC Paris - Tax & Law ( email )

1 rue de la Libération
Jouy-en-Josas Cedex, 78351
France

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