Guida Operativa CONSOB in materia di Algo trading e HFT: Definizione e Obblighi Informativi (23 giugno 2023)

Consob has published new guidance on „Algo-trading and HFT“ addressed to „investment firms and banks engaged in algorithmic trading or high-frequency trading (HFT) activities as well as entities referred to in Article 67-ter (8) of the TUF.
Algorithmic trading, as defined by the TUF, refers to the trading of financial instruments where a computer algorithm automatically determines the individual parameters of orders (such as initiation, timing, price, quantity, or post-submission management), with minimal or no human intervention.
HFT refers to any algorithmic trading technique characterised by infrastructure aimed at minimising network and other latencies, the initialisation, generation, transmission, or execution of orders without human intervention, and high intraday trading volumes.
The guidance covers the requirements for the qualification of activities and the disclosure of information to support the „systematic organisation of obligations“, including requirements under the European framework, indications included in Q&As provided by ESMA and „interactions of obligations under European law with those under national law“. Additionally, document templates have been included in the guidance, which are designed to facilitate the submission of supervisory information and data by investment firms to Consob pursuant to Article 17 (2) Mifid II, implemented by Article 67-ter (2) of the TUF.