EPTA News
-
CRD IV bonus cap has perverse effect of increasing risk
The EU's Capital Requirements Directive CRD IV has imposed a bonus cap on credit institutions and investment firms with the intention of discouraging the excessive risk-taking with client monies that contributed to the financial crisis. However, the inappropriate application of this bonus cap to principal trading firms now has the potential to result in the perverse effect of actually increasing risk, whilst hurting market quality.
CONTINUE READING -
Liquidity and Quote Fading
One observation I see made regularly by commentators on electronic markets is that liquidity can 'disappear in an instant' and is somehow ephemeral. Quotes, they say, tend to fade as soon as the market notices there's a seller around. I'm always rather bemused by this observation, because it implies that in more manual markets, liquidity is (or was) more stable.
CONTINUE READING -
Piebe Teeboom joins FIA EPTA as Secretary General
FIA European Principal Traders Association (FIA EPTA) is pleased to announce the appointment of Piebe Teeboom as Secretary General.
CONTINUE READING -
Non-discriminatory access to MiFID II derivatives trading venues: Critical for market transparency and competition
With the requirement for MTFs and OTFs to have objective participation criteria, MiFID II aims to dismantle existing barriers and increase competition and pre-trade transparency for all market participants. It is worth remembering, however, that despite similar objective participation criteria requirements in the US, additional guidance from regulators was required in order to address certain discriminatory practices.
CONTINUE READING -
FIA EPTA response to Commission call for evidence re: EU regulatory framework for financial services
On 29 January, FIA EPTA submitted a response on behalf of its 27 members to the European Commission’s call for evidence on the EU regulatory framework for financial services.
CONTINUE READING -
Financial Markets 2.0
FIA EPTA's Acting Chairman, Mark Spanbroek, presents a John Lothian MarketsWiki Education series on 'Financial Markets 2.0'.
CONTINUE READING -
The myth of order cancellations: a new study
It is sometimes said that high frequency traders aren’t really providing liquidity to the market because they cancel orders more frequently than other market participants. A new research paper shows that this really isn’t true.
CONTINUE READING -
FIA EPTA’s response to Capital Requirements Directive 2013/36/EU (CRD IV), and overall efficiency of CRD IV remuneration rules
The FIA European Principal Traders Association (FIA EPTA) represents 27 regulated firms in Europe that trade in financial instruments using their own capital.
CONTINUE READING -
Johannah Ladd to leave FIA EPTA
The European Principal Traders Association today announced that Johannah Ladd, the association’s Secretary General, has informed the FIA EPTA executive committee that she will leave her position on 1 January to explore other interests.
CONTINUE READING -
High Frequency Trading: What’s the big deal?
This is the question asked by Evangelos Benos, from the Bank of England’s Financial Markets Infrastructure Division, on the Bank’s staff blog (Bank Underground). As well as providing a useful summary of the evolution of HFT, the main focus of the blog is a discussion of the overall impact of HFT on market quality. His conclusion? That while there are “some aspects of HFT activity that are still contentious… the inescapable conclusion that so far emerges is that HFT has mostly had a positive impact on market functioning.”
CONTINUE READING