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Reg rageNovember 26 2012

Should the brakes be applied to high-frequency trading?

The European Parliament wants high-frequency traders to hold stocks for half a second before selling to prevent a future stock market crash, but critics retort that slowing down trading is not a solution to the problem.
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What is happening?

In October 2012, the European Parliament proposed curbs on algorithmic high-frequency trading (HFT), in which propriety algorithms trade thousands of orders in a thousandth or even millionth of a second. The parliament’s decision comes as part of a proposal by the European Commission to tighten rules under the Markets in Financial Instruments Directive.

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