The Technical Committee of the International Organization of Securities Commissions Wednesday published a Consultation Report aimed at developing recommendations to mitigate risks posed to the financial system by technological developments, such as high frequency trading.
The work is being carried out in response to a G20 Leaders request during the Seoul Summit in 2010, the international body of securities regulators said.
The report analyses "the most significant technological developments and related micro-structural issues that have arisen in financial markets in recent years, notably high frequency trading, and their impact on market structure, participants’ behaviour, price discovery and formation and also on the availability and accessibility of liquidity."
The report also looks at co-location, tick sizes, fee structures, indications of interest and trading control mechanisms.
Additionally the Report outlines recent standards and recommendations developed by IOSCO in relation to market integrity and efficiency issues, including its recent work on Principles for Dark Liquidity.
The consultation period will close on 12 August, so that a further report can be prepared before the G20 Finance Ministers meet in October.