DBIS has published the results of research into the effects of computer trading in financial markets. The research considers a number of policy measures under debate for MiFID 2, and its main conclusions include:

  • general support for the use of circuit breakers;
  • support for a coherent tick size policy across similar markets;
  • less support for policies imposing market-maker obligations;
  • concerns over the introduction of minimum resting times; and
  • uncertainty over the effectiveness of proposed measures to require notification of algorithms or minimum order-to-execution ratios.

(Source: DBIS Publishes Computer Trading Conclusions)