Vedder Thinking | News Sam Tyfield Discusses German HFT Act and MiFID II Regulations in Automated Trader
Sam Tyfield, a London-based Partner in Vedder Price's Investment Services and Finance & Transactions practice groups, was quoted in a recent Automated Trader article "Germany Leads, EU Follows?" The piece discusses how Germany's high frequency trading (HFT) act will affect the Markets in Financial Instruments Directive (MiFID II), as recently amended by the European Securities and Markets Authority (ESMA).
The German HFT act has received positive feedback from BaFin (the German financial markets regulator) and other regulators, causing many to suggest that ESMA use the German legislation as a model for MiFID II. Mr. Tyfield weighs in, stating, "It's too early to say. I see demand to follow the German high frequency trading law as a blueprint for Europe because the effort to make it workable has been done to a large extent." The article goes on to discuss the similarities and differences between the German HFT act and MiFID II. According to Mr. Tyfield, "What was implemented in the context of the German HFT law was basically what was discussed at MiFID II level 1 at that time. I can't say it's going to be implemented in the same way as we are still in the consultation and discussion period, but the philosophy seems to be the same—they want to be able to identify at as granular a level as possible who's in charge of developing and putting the trades on, so they know whose door to kick in if something goes wrong."
To read the complete article, including more of Mr. Tyfield's commentary, click here. (login credentials may be required).