Reductions in tick sizes may be prompting high-frequency traders to move to the sidelines to re-assess their strategies, says Yasuaki Sumimoto, head trader at Mitsubishi UFJ Asset Management.
The firm narrowly escaped a heavy fine because the share price movements in question occurred before new electronic trading rules took effect in January.
The US bank has hired a batch of senior traders and sales traders from rivals, notably Credit Suisse, in a drive to integrate execution for long-only and hedge fund investors.
Traders and brokers have set aside competing commercial interests to develop a due diligence checklist to comply with Hong Kong's incoming regulatory regime for e-trading.
Sebi is set to impose limits on block-crossing, but brokers and traders say it won’t be effective in preventing a flash crash and will likely hurt execution and exacerbate volatility.
The bank's Asia-Pacific joint head of equities, John Adair, argues the model of running proprietary and client equity business in parallel is unsustainable in this regulatory environment.
Bank compliance and legal counsel officers raise serious doubts over how new regulatory rules to curb rogue algo trading would be applied and who would potentially be held liable.
The executive director of the SFC's enforcement division, Mark Steward, tells a forum in Hong Kong that proposed risk-control rules on algo trading are less invasive than feared.