Extremely harsh HFT rules on the horizon?


In a Bloomberg article some extremely harsh consequences of MIFID II were discussed. Regulations would include the obligation to test and disclose trading algorithms. 

Testing an algorithm is not trivial and the question is if regulators are currently equipped to define, evaluate, or conduct such a test. Disclosing an algorithm is more problematic as these are a competitive edge. If this goes through the art of obscuring an algorithm may become quite important.