Australian Securities Exchange Says HFT Rules Won't Improve Market Confidence

The Australian Securities Exchange ("ASX") submitted a letter to the Australian Securities and Investments Commission ("ASIC") stating that the proposal to target "small and flickering" orders will not improve market confidence. "Having established a regulatory framework that does not incentivise the activities of short-term traders, ASIC should be cautious about making any changes (e.g. narrowing ticksizes) that may shift that balance," the ASX said. The ASX further warned regulators that efforts to target high-frequency-trading activities likely would have unintended consequences.

Related news item: Australian Securities and Investments Commission Releases Consultation Paper and Report on Dark Liquidity and High-Frequency-Trading.For a compilation of recent related news items, link to Current Topics - Algos and Electronic Trading.