Algo Traders Warn U.K. Over MiFID II Rules
- Three lobbying groups request BOE to follow EU standards
- Regulations cover testing, validation of algorithmic trading
Photographer: Balint Porneczi/Bloomberg
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Financial firms are pressing the U.K. to stick as closely as possible to the European Union’s MiFID II restrictions on algorithmic trading, warning the Bank of England against imposing even tougher rules on the industry ahead of Brexit.
Three of the biggest lobbying groups for banks and exchanges told the BOE that its proposals on algorithmic trading go beyond the EU’s standards and risk “creating operational inconsistencies and additional requirements” for firms doing business across the 28-nation bloc. Any “gold-plating” of requirements for firms to test and oversee algorithms “compromises harmonization of the legislative framework across Europe,” they said.