Acoording to MIFID II (article 4, 39), algorithmic trading "means trading in financial instruments where a computer algorithm automatically determines individual parameters of orders such as whether to initiate the order, the timing, price or quantity of the order or how to manage the order after its submission, with limited or no human intervention". Besides, it "does not include any system that is only used for the purpose of routing orders to one or more trading venues or for the processing of orders involving no determination of any trading parameters or for the confirmation of orders or the post-trade processing of executed transactions".
Note that this definition does make reference, by any means, to the speed at which the messages are sent by the computer algorithm neither to the latencies inherent to the trading infrastructure. Indeed, high-frequency trading is not the same thing as algorithmic trading, but instead it is a subset of the latter type of trading. For more information, check: What is high-frequency trading?
Note that this definition does make reference, by any means, to the speed at which the messages are sent by the computer algorithm neither to the latencies inherent to the trading infrastructure. Indeed, high-frequency trading is not the same thing as algorithmic trading, but instead it is a subset of the latter type of trading. For more information, check: What is high-frequency trading?
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