Eurex Plans Penalties on Some High-Speed Practices
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Deutsche Boerse AG’s Eurex derivatives market plans financial penalties for certain high-speed trading practices, a shift that comes amid German and European Union attempts to curb computerized transactions.
Eurex, based in Frankfurt, told members in a statement that on Dec. 1 it will start charging those that submit an unusually high number of orders in relation to consummated transactions. High-speed traders often flood markets with bids and offers in an attempt to find parties to do business with, tasking the infrastructure of exchanges and brokerages. Eurex also said it will penalize firms that exceed a daily maximum of transactions.