Core Viewpoint - The new regulations on algorithmic trading aim to shift the focus from "speed competition" to "strategy depth competition," enhancing market fairness and transparency while promoting the long-term healthy development of the capital market [1][4]. Summary by Sections Algorithmic Trading Regulations - Algorithmic trading refers to the automated generation or submission of trading instructions via computer programs in securities exchanges. The core advantages of quantitative trading include discipline, efficient opportunity capture, precise risk control, and diverse strategies [2]. - The new regulations, effective from July 7, 2024, further detail four types of abnormal trading behaviors, including rapid order submission rates, frequent order cancellations, aggressive price manipulation, and large transactions within short time frames [2][3]. High-Frequency Trading Standards - The new regulations define high-frequency trading as a single account submitting or canceling a total of over 300 orders per second or over 20,000 orders in a single day. This standard is based on mature foreign market practices and aims to be understandable and operable for market participants [3]. Market Impact - The new regulations are expected to reduce the scale of high-frequency trading, potentially leading to decreased liquidity in micro-cap stocks while increasing the attractiveness of blue-chip and technology growth sectors. The annualized volatility may decrease from 25% to below 18% [4]. - Brokerage firms will need to enhance client management and compliance systems, leading to increased compliance costs. Top quantitative firms may shift strategies towards lower-frequency trading, while smaller firms may face accelerated exit due to cost pressures, resulting in higher industry concentration [4]. Investor Considerations - The reforms in quantitative trading rules are seen as beneficial for retail investors, as they reduce the impact of quantitative trading on them and help protect their interests, thereby maintaining market fairness [5]. - Retail investors are advised to avoid frequent trading and instead focus on value investing and medium to long-term strategies to better capture market opportunities [5]. Challenges Ahead - The implementation of the new regulations faces three main challenges: the technical system pressure requiring millisecond-level responses for high-frequency trading monitoring, the transitional pain for strategies reliant on high-frequency trading, and the need to balance regulation with market efficiency to avoid liquidity reduction [5].
程序化交易新规今起落地 如何影响市场？
Sou Hu Cai Jing·2025-07-07 09:22