Euronext hit with record fine for HFT

Author: Danielle Myles | Published: 9 Dec 2015

France’s securities regulator has slapped a record €5 million ($5.43 million) fine on the national stock exchange Euronext Paris and a high frequency trading (HFT) firm in relation to market manipulation caused by an algorithm.

It’s the strongest sign yet that regulators will stringently enforce incoming EU rules designed to hold HFT firms to account, and that they are willing to dedicate significant time and resources to understand the  clandestine and highly technical algorithm industry.

The penalties handed down by l’Autorité des marchés financiers (AMF) on Tuesday show it has market manipulation, particularly related to HFT, firmly in its sites.

"There’s the magnitude of the fine, the fact Euronext has been sanctioned as well, and the fact that AMF has issued a press release – which it does not normally do for sanction committee decisions. Taken together, the AMF is clearly sending a message to the market,"...