HFT Resting-Time Rules Would Damage Market, German Exchanges Say
January 16, 2013
Incumbent exchanges in Europe, such as Deutsche Boerse and London Stock Exchange Group Plc, have come under increasing competitive pressure from alternative trading platforms which have sought to attract technologically advanced, high-speed trading firms. Bats Chi-X Europe, the largest pan-European trading system, said it took 24.6 percent of the market for the region’s equities in 2012.
High-frequency trading accounts for 40 percent of share trading volume on Deutsche Boerse’s Xetra platform and 30 percent of volume on its Eurex derivatives exchange, the Frankfurt-based company said.
“What has hindered market participants shifting liquidity from the incumbent exchanges is that they know that these are the reliable exchanges with strong supervision and safety provisions in place and nobody will run the risk of doing unregulated, unstable things,” Mai of Deutsche Boerse said.