02 November 2011
Dark Pools and HFT: Good or Bad?
Speaker: Dr Kay Swinburne, MEP, UK Conservative Spokesman - Economic and Monetary Affairs
Kay Swinburne has been instrumental in moulding the principles of the revisions to the next generation of investment markets regulations, thanks to her report “The regulation of trading in financial instruments: dark pools etc” from summer 2010. The revised version of the paper was adopted by the European Parliament’s Committee on Economic and Monetary Affairs (ECON) on 9th November 2010, and means that all broker dark pools are reclassified as multilateral trading facilities (MTFs) or systematic internalisers (SIs), and that dark executions should be subject to size restrictions.
Looking at MiFID II and beyond, are such changes to dark pools and regulations restricting High Frequency Trading a good or a bad thing? To find out, we’ve asked Kay to tell us her current thinking.
Kay was elected as the Conservative MEP for Wales in June 2009. This saw the Conservative Party top the elections for the first time in Wales in modern history. A successful career in investment banking has equipped her with in-depth knowledge of the global financial markets. This, combined with her
experience advising businesses in Europe and the US, has led to her appointment on the Economics and Monetary Affairs Committee in the European Parliament.
At present, Kay is deeply concerned about how quickly the European Union is responding to financial service regulation without having properly looked at the impacts of what it is doing. She believes that the EU should work within a global framework as the crisis that we are facing is global; therefore it
needs to work with the United States and so a global co-ordinated strategy needs to be implemented that is in line with the agenda of the G20.