New rules coming on high-speed trading

Je vous invite à lire, le cahier sur la Taxe Robin des Bois

La Taxe Robin des Bois

 

De plus en plus de politiciens, d’organisations de la société civile, d’économistes plaident vigoureusement en faveur d’une Taxe mondiale sur les transactions financières (TTF).

 

La TTF est une taxe très faible appliquée aux transactions réalisées sur les marchés financiers : commerce des actions, des obligations, des produits dérivés ou des devises.

Évidemment, nos banques canadiennes refusent toutes taxes ou régulations sur les micros transactions, ils ont un bon allié, qui s'appelle M. Harper, enfin, vive les groupes d'intérêts !

Il est tout à fait anormal de voir nos banques faire plus de 20 milliards de profit dans une année et le fédéral faire plus de 40 milliards de déficits dans cette même année.

Et le peuple, entre temps, se tape toutes les hausses, je pense qu’il est temps qu’il y a juste équilibre entre les financiers et la population, et les Européens ont raison d’imposer une :

Taxe Robin des Bois


Extrait de: New rules coming on high-speed trading, Barbara Shecter, Financial Post, Apr 8, 2011  

Canadian Imperial Bank of Commerce was among the first and boldest financial institution in this country to embrace high-speed trading and direct market access, industry sources say.

Canada’s financial regulators are preparing, perhaps as early as Friday, to take the first steps toward imposing regulations on a part of the industry that has already come under heavy scrutiny and control in other parts of the world: lightning-fast electronic trading which has grown to a significant chunk of trading volume in the few short years since its arrival.

Also on the table for stricter monitoring is direct market access to exchanges, also known as “unfiltered” or “naked access,” which has been embraced by some Canadian financial institutions and has come under the strictest regulatory control in the United States.

A ban on so-called naked access — where dealers provide high-speed traders with access to securities exchanges with few controls — will also be on the table for Canada when the Canadian Securities Administrators lay out their plans, according to sources familiar with the regulators’ plans.

“It’s high time they [regulators] addressed this,” said Wendy Rudd, a partner at financial services consultant Capco, who worked in the industry before becoming a consultant.

High-speed electronic traders have been lauded by some industry players because they bring liquidity to markets which eases trading and brings down the cost. But they have also been targeted by regulators as culprits that can rob the market of that same liquidity at crucial times and contribute to events like the “flash crash” last May when markets lost billions of dollars of value in a matter of minutes and recovered just as quickly.

Mary Schapiro, the chairman of the U.S. Securities and Exchange Commission, compared the dealer practice of giving outside traders unfiltered access to exchanges to:

“giving your car keys to a friend who doesn’t have a license and letting him drive unaccompanied.”

The regulations that are proposed by the Canada’s CSA will be open for discussion, which industry players say is bound to be lively, particularly given the fact that while some Canadian dealers have embraced facilitating high-frequency trading and direct market access, others have steered clear or lost ground.

Canadian Imperial Bank of Commerce was among the first and boldest financial institution in this country to embrace high-speed trading and direct market access, industry sources say. CIBC burst from fourth place to first in trading market share in 2009, a startling jump in an industry more accustomed to moves of just a few basis points year-over-year.

Sources say the firm now accounts for as much as one-fifth of the Canadian marketplace for high-frequency trading. Exact numbers are difficult to track because much of the trading appears as “anonymous.”

At stake for dealers who have derived market share and revenue gains from the new flavour of trading are not only the profits from facilitating trades. There is also the clout with companies considering issuing stock. Firms are more likely to use dealers that trade the highest volume of their stock. Institutional shareholders with large orders may also gravitate toward the dealer with a high volume of trades.

Ms. Rudd, at Capco, said there have been few limits on high-speed trading and direct market access in Canada. The only controls were adapted from a Toronto Stock Exchange rule that is more than 20 years old and could not have anticipated the volumes at play in today’s high-speed trading environment where millions of shares can change hands in fractions of a second.

She said although some market share and revenue losses could occur for dealers, risk controls demanded by new regulations would offer protection for the dealer and the capital markets in the event a high-frequency trader did not fulfill market obligations.

In the United States, the Securities and Exchange Commission voted unanimously last year to adopt a new rule to require brokers and dealers to have risk controls in place before providing their high-frequency trading customers with access to the market.

Ms. Schapiro, the SEC chairman who compared earlier practices in the U.S. market to risky driving, said the new rule requires that broker-dealers “not only remain in the car, but also maintain control of it so we can all be assured the rules of the road will be observed before the car is even put into drive.”

Ms. Rudd said industry players that are committed to high-frequency trading are likely to try to find ways to adapt to any new rules.

“The more checks and controls you inject into the process, the more it slows down the orders, and basically high-frequency trading is about getting there first,” she said. “Sponsoring dealers will look for innovative ways to minimize incremental latency.”