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EU regulators agree on definition of HFT

Regulators settle on a firm's level of message traffic to determine whether its activities constitute high-frequency trading under Mifid II

EU regulators agree on definition of HFT
Photo: iStockPhoto

European regulators have settled on a definition of high-frequency trading as part of efforts to rewrite the rulebook for trading in the region.

From 2018, any firm trading on its own account and sending at least two messages per second around a 'liquid' instrument on any European market will be classified as an HFT. The same will apply to any firm sending at least four messages per second in all instruments being traded on any given venue.

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