FX trading restrictions implemented on EBS
ICAP, the world's largest interdealer broker decided to tighten the rules of high-frequency trading (High-Frequency Trading, HFT) platform EBS. The ban resulted from methods such as ''statistical arbitrage'', where high-frequency traders were asked to reduce the speed of placing orders.
However, this is thought to be only the beginning of a string of strict impositions to follow. ''The new rules will apply to all participants of the EBS and are aimed at stimulating the operations that increase liquidity and reduce the destructive operations'', stated ICAP.
ICAP consulted with various traders, to ensure that these tightening efforts are aimed in the proper direction, as one London trader sustained.