The European Union is beefing up its eight year old market

13 Jul The European Union is beefing up its eight year old market

Regulators must track FX high

canada goose store LONDON, Sept 27 (Reuters) Policymakers must deepen contacts with foreign exchange dealers, prime brokers and electronic trading platforms in the $4 trillion a day forex market to monitor the expanding canada goose clearance sale activities of high frequency trading, buy canada goose jacket a report published on Tuesday said. canada goose store

Canada Goose Parka However, it said a crash in May last year suggested systemic risks are more likely to be triggered by an algorithmic trade gone wrong, rather than pure HFT which it said now accounted for Canada Goose online about a quarter of spot forex trade. Canada Goose Parka

canada goose clearance HFT, which tends to involve small size trades, short Canada Goose Parka horizons and diverse strategies, is picking up in the forex market but its canada goose uk shop share was still below that in equities. canada goose clearance

buy canada goose jacket cheap HFT involves the use of sophisticated, Canada Goose Coats On Sale technological and quantitative tools like algorithms to generate near term trading signals with very short risk holding periods. Their growth in forex has been facilitated by rapid advances in information technology and wider use of electronic trading. buy canada goose jacket cheap

canadian goose jacket should continue to keep abreast of this development by maintaining contact and dialogue with the evolving set of relevant market participants, the report said. stock markets saw wild swings and triggered volatility across asset classes including forex. canadian goose jacket

buy canada goose jacket may under uk canada goose outlet some circumstances accelerate and propagate shocks initiated elsewhere, the BIS report said. buy canada goose jacket

Canada Goose Jackets are key differences in market structure that may make a flash crash type event less likely in FX than in equities. But certain longer term trends such as the adoption of similar technologies have seen FX and equity trading converging. Canada Goose Jackets

cheap Canada Goose Regulators worldwide are ramping up efforts to supervise HFTs. The European Union is beefing up its eight year old market abuse rules to catch up with high frequency trading in the commodities market and plug supervisory gaps. cheap Canada Goose

Canada Goose sale The BIS report said HFT strategies in the forex and stock market were considerably different. For example, HFT in stocks can benefit from a strategy where local exchanges offer rebates to attract flows and boost cheap canada goose uk volumes. No jackets such market making strategy is yet available in the FX market. Canada Goose sale

Having shot into the limelight in stock markets, HFT in forex has increased since it first appeared in early 2000. The BIS report estimates their share at 25 percent of the global spot market turnover. equity market and 38 percent in European markets.

. So far, HFT is concentrated canada goose coats in the major currency pairs such as euro/dollar, dollar/yen, sterling/dollar and euro/Swiss franc, but it has the potential to canada goose uk outlet spread to emerging market currencies, the BIS report said.

canada goose deals The report said Canada Goose sale HFT has also helped to distribute liquidity across the forex market, improve efficiency and narrow spreads between bids and offers in major currency canada goose store pairs. canada goose deals

canada goose coats It said recent experience showed HFT participants are not necessarily the canada goose coats on sale first to flee during times of financial stress compared with other cheap Canada Goose traditional players. In fact, they are quick to re enter the market as stability returned. canada goose coats

canada goose coats on sale NOT PREDATORY HFT firms, which are mostly specialised and independently run, conduct their activities on inter dealer electronic broking platforms EBS Canada Goose Outlet and Reuters and multi bank electronic communication networks like Currenex, Hotspot FX and FXall. canada goose coats on sale

Canada Goose online They are also active on the Chicago Mercantile Exchange (CME) for trading involving FX futures and tend to trade on their own account. A few banks conduct some HFT in proprietary trading, but they are not major players. Canada Goose online

canada goose The BIS report also debunked a notion put forward by politicians that high frequency trades employed predatory or unfair canada goose black friday sale practices, adding they are subject to three levels of regulation. canada goose

addition to HFT firms own Canada Goose Jackets risk controls, there is also monitoring by prime brokers. Furthermore, trading platforms also have rules to help foster an orderly and fair trading environment, but the nature canada goose and severity of such rules vary across platforms.

canada goose clearance sale The BIS report said the differing treatment of Canada Goose Online electronic trading platforms due to the various regulatory buy canada goose jacket cheap changes would have a longer term bearing on HFT. So far, spot transactions, which constitute the bulk uk canada goose of HFT, are exempt from regulations of the Frank Dodd Act in the canada goose uk black friday United States. canada goose clearance sale

Canada Goose Outlet But that could change as participants seek to migrate their transactions, including spot trades, to venues that seek to offer all FX derivatives trading for ease of execution, as well as to minimise margin, capital and collateral costs for non spot FX transactions. Canada Goose Outlet

canada goose black friday sale impact on HFT participants depends on canada goose clearance whether there will canada goose factory sale be more formal regulation of the venues that they currently favour and whether canadian goose jacket these participants will face some kind of registration requirement, the report said. (Editing by Stephen Nisbet) canada goose black friday sale.