No other than European Central Bank policymaker Ewald Nowotny called today for a regulatory ban on high-frequency trading, saying the technique of using computer algorithms to generate multiple high-speed trades had no practical value.
Reading the note from Reuters made me wonder whether Mr. Nowotny had thought about the consequences of a potential ban, when the technique already has more than 50% participation of equities trading in the continent.
“With high-frequency trading there is nothing to be regulated, it is to be banned. There is no really demonstrable net advantage from this (form of trading),” he told a panel discussion at a regulatory conference.
Mr. Nowotny, who heads the Austrian National Bank, would certainly benefit from attending one of my workshops. While I only have New York, September 25, Chicago, October 9, Dubai, October 14, Jakarta, November 16, Shanghai, November 22, and London, December 12, in my calendar for the year, I am faced with the urgent need to take my slides to Austria and add some light where darkness seems to be reigning; at least, I might schedule a stop in the Kitzbühel Alps.Read Full Post | Make a Comment ( None so far )