Vedder Thinking | News Sam Tyfield Quoted in Financial News Article on German HFT Regulations
February 3, 2014
Sam Tyfield, a Partner in Vedder Price's London office and a member of the firm's Investment Services and Finance & Transactions groups, was quoted in a Financial News article titled "HFT Firms Face German Slowdown After Rules Change." As of February 14, 2014, all firms trading in Germany on a high-frequency basis must be licensed with the country's regulator, BaFin. Many firms were anticipating that, by holding local licenses with other EU regulators, they would be exempt from having to obtain a license with BaFin. On January 22, BaFin announced that this would not be the case. Mr. Tyfield weighed in on the situation by saying, "BaFin has said firms [locally] authorized in the UK are not entitled to an exemption because their capital requirements are not equivalent to German rules."
The article goes into further detail on the authorizations and registrations required of HFT firms, including fully authorized firms and "local country" authorized firms. It is believed that fully-authorized firms are able to "passport" their license into Germany, but BaFin informed those with local authorizations that their capital requirements were not deemed strong enough. Mr. Tyfield commented, "These firms can continue to trade provided they make an application to become fully authorized. For firms which have applied for but have not yet received authorization, the situation is not clear."
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