As the planet’s rotation de-accelerates on its axis due to tidal forces between it and the moon, equating to the longevity of a day lengthening by 1.4 milliseconds every hundred years, both our appetites and dependencies to accelerate efficiencies via algorithms will inevitably draw greater scrutiny.
This is the second in a series of blog posts on MiFID II (Markets in Financial Instruments Directive II). If you missed the first post, see MiFID II: How Did We Get Here and What Does it Mean? Continuing to review MiFID II, algorithms form the bedrock of modern electronic trading and, unsurprisingly, are of significance in the regulation. This post introduces an overview of the focus of the regulation and its concepts specific to algorithmic trading.
Trading Technologies provides a sophisticated and industry-tested product suite of automated order types and tools including TT’s Autospreader®, ADL®, APIs and synthetic order types, such as OCOs and Icebergs. These order types are in scope under MiFID II. Having reviewed the regulation, it is clear that the bar has been deliberately set at a level to capture a greater swath of automated order types in order to prevent systemic risk and address G20 concerns. Read on for an overview. (more…)