High frequency trading presents something of a conundrum for regulators. The HFT community contributes more than half of the liquidity in some markets. On the other hand, regulators see many of the trading practices used by the high frequency and wider proprietary trading community as crossing that rather blurry line between 'competitive advantage' and 'unfair'. And 'Fair' is the new mantra. So what next?
Automated Trader talk to Martin Cornish and Lance Zinman of specialist law firm Katten Muchin Rosenman Cornish LLP about the current regulatory framework and the likely changes in both the U.S. and Europe.