High frequency trading -02/08/11

2 Aug 2011

IBFed has given IOSCO its reflection on high frequency trading (HFT). In doing so, IBFed expressed support for the recommendation that issues around automated and high frequency trading be given careful consideration. We noted that there is the recognition that HFT could benefit the market by increasing liquidity, reducing bid-offer spreads, and enabling market participants to obtain best execution. We also urged that any rules to regulate the provision of HFT or HFT firms themselves should be flexible and dynamic, in order to adapt to changing market conditions quickly.