Salient to Investors:
Germany advanced legislation that would force high-speed trading firms to register with the government and limit their ability to rapidly place and cancel orders. The European Commission agreed on even broader rules for all of the EU if governments also give their approval.
Celent estimates high-speed trading accounts for 30 percent of all trading in Australia stocks versus 65 percent in the US. Australia intends to bring computer-driven trading firms under stricter supervision.
Michael Aitken at the Capital Markets Cooperative Research Center said the push for regulation in Australia and much of the rest of the world has been driven by hysteria rather than evidence based policy.
Canada has increased the fees it charges firms that flood the market with orders, and in October will curtail the growth of dark pools that have proliferated in the United States.
Near 15 percent of all American stock trading occurs in dark pools.