• Home
    • Financial market sup ...

Algorithmic trading

Introducing algorithmic trading

An algorithmic trading system makes it possible for persons managing their own assets or persons in the capacity of investment firms to determine or program specific rules for the complex identification of opportunities to enter or exit investment positions with a computer system used for determining the individual parameters of orders relating to financial instruments, as well as for the generation, timing, routing or execution of these orders.

The rules for identifying investment opportunities or investment strategies may be determined using pre-defined tools based on, for example, technical analysis. These include, for instance, crossings of moving averages in combination with indicators from a technical analysis and with chart views. Nevertheless, investment strategies can also be defined using a more complex solution in which the strategy is programmed in the language of the given trading platform.

Algorithmic trading does not include any system that is only used for the purposes of routing orders to one or more trading venues, for the processing of orders involving no determination of any trading parameters, confirmation of orders or for the post-trade processing of executed transactions.

Contents« Back to FinTech

  • I. High-frequency algorithmic trading

  • II. Legislation

Contact form of the NBS Innovation Hub

Documents of international standardization institutions

European Supervisory Authorities

Date Name
18/07/2019 EBA publishes Report on regulatory perimeter, regulatory status and authorisation approaches in relation to FinTech activities
08/03/2018 EC: FinTech action plan: For a more competitive and innovative European financial sector

International Financial Market Regulation Organizations

Date Name
14/02/2019 FSB FinTech and market structure in financial services: Market developments and potential financial stability implications
08/12/2017 IOSCO Research Report on Financial Technologies (Fintech)
27/06/2017 FSB Financial Stability Implications from FinTech Supervisory and Regulatory Issues that Merit Authorities’ Attention