EU Legislators Look To Rein In High-Frequency Trading

Law360, New York (September 26, 2012, 9:51 PM EDT) -- The European Parliament's Economic and Monetary Affairs Committee on Wednesday unanimously approved new uniform trading rules for securities that include a curb on high-frequency trading.

The proposed updates to the Markets in Financial Instruments Directive would set up a half-second pause on all orders to slow down algorithmic trading, in which computers can trade millions of orders per second. The rules would also require that all firms be prepared to deal with sudden increases in order flows through the use of devices like circuit breakers that...
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