Project Report on Algorithmic Trading – Governance and Controls

More than three quarters (78%) of the transactions on Euronext Amsterdam goes through trading algorithms. Trade algorithms thus play an increasingly important role on the capital markets. In the report 'Algorithmic trading – governance and controls', the AFM shares its findings of the investigation into the control of these trading algorithms. The AFM wants institutions to be aware of the risks and possible consequences of incidents in trading via these algorithms. In brief:

• Trade algorithms play an increasingly important role in transactions on capital markets
• Uncontrolled trade algorithms are a threat to the stability of capital markets
• AFM sees room for improvement in testing trade algorithms for commissioning

Please find the Report here.