Some welcome cheer from us retail crowd as the EBS looks to scrap ‘first in , first out rule for computerised trading
One of the main forex trade platforms EBS is looking at scrapping the ‘first in, first out’ rule to trading. Under this rule whoever is quickest to post their order get’s the trade. Over the years this has handed a huge advantage to HFT machines.
The proposal is to batch all orders together and execute them at random.
EBS chief exec, Gil Mandelzis said;
It is a technology arms race to the bottom, and a huge tax on the industry, since people are having to make significant investments in speed without any connection to their trading strategy
Don’t now expect to be able to take on the machines at this weeks non farm payrolls release though. The HFT’s will still get their orders in a lifetime ahead of us mere mortals pushing our buttons.
Full story (may be gated) from the FT here.