Dutch Authority Enhances Algorithmic Trading Controls

Reported 28 days ago

The Dutch Authority for the Financial Markets (AFM) is collaborating with the European Securities and Markets Authority to improve pre-trade controls for algorithmic trading, aiming to prevent erroneous orders from disrupting markets. New rules under MiFID II require traders to verify order factors before execution. AFM is also partnering with the University of Oxford to study trading models and manipulation risks. The growing complexity of AI in trading necessitates a better understanding of algorithms' triggers, underscoring the need for ongoing regulatory advancements.

Source: YAHOO

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