A high-frequency trading (HFT) lobby group has welcomed recent national-based regulation in Europe and has urged regional European policy makers to take a similarly nuanced approach.
A draft law in Germany addressing HFT closed for feedback last week and will pass through the country's parliament this year, joining a recent spate of regulatory initiatives by individual states ahead of MiFID II.
The German law will compel trading venues to set their own order-to-trade ratios (OTR), mirroring similar rules that were launched in Italy in April.
Remco Lenterman, chairman of HFT lobby group FIA European Principal Traders Association and managing director at Amsterdam-based HFT firm IMC, warned European regulators that are currently debating MiFID II to take note of exemptions for market-making activity included in German and Italian rules. The French financial transaction tax (FTT) that imposes a 0.2% charge on net buys of French blue-chip stocks, was introduced on 1 August also includes exemptions for market making activity.