Vedder Thinking | News Sam Tyfield Quoted in WatersTechnology Article on Recent Moves by the German Federal Financial Supervisory Authority
February 5, 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 recently quoted in the article "BaFin Moves Highlight EU HFT Regulatory Discrepancies" published by WatersTechnology. Recent moves by the German Federal Financial Supervisory Authority, BaFin, have increased pressure on a number of high-frequency trading (HFT) firms. Those firms registered under a "local license," or non-MiFID license, won’t be authorized to perform high-frequency trading activity in Germany as of February 14, 2014, due to lower capital requirements in other countries. In the article, Mr. Tyfield weighs in by saying, "What BaFin has determined is that because some HFT firms, like the UK-authorized non-MiFID firms, have significantly lower capital requirements than MiFID-authorized firms, their authorization is not equivalent and not suitable for the purpose of the German HFT law."
The article goes on to discuss the initial capital requirements required of HFT firms and the recurring problem of HFT having different definitions in different European countries.
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