Algorithmic Trading Debate

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Department: Cabinet Office

Algorithmic Trading

Baroness Kramer Excerpts
Monday 6th July 2015

(9 years, 4 months ago)

Lords Chamber
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Lord Bridges of Headley Portrait Lord Bridges of Headley
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As so often, the noble Lord speaks with a great amount of insight and experience, I am sure, on this matter.

Baroness Kramer Portrait Baroness Kramer (LD)
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I wonder if the Minister could answer the question from the noble Baroness, Lady Wheatcroft, on the impact on small investors. Would he not agree that ever higher speed high-frequency trading, together with dark pools, has in effect rigged the trade in financial instruments against small investors?

Lord Bridges of Headley Portrait Lord Bridges of Headley
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I reiterate that the PRA, and Andrew Bailey in a speech last month, drew attention to a lot of these issues. I hope the noble Baroness takes some consolation from that and from what I said about the FCA. On smaller investors, as I said, the Government are looking at this issue. I draw attention to the Foresight report which said,

“transaction costs have fallen for both retail and institutional traders”.

We therefore need to look at this in a balanced and proportionate way.