Os desafios da regulação do High Frequency Trading no Brasil - uma abordagem prudencial à luz das transformações operadas pela inovação tecnológica no mercado de valores mobiliários

Abstract

This study examines high frequency trading (or HFT) in securities markets as a product of technological innovation. HFT is a recent trading technique that has given rise to several transformations in the market. It is also pointed as source of several problems and risks. Its technological background must be understood in order to provide an adequate treatment to the subject by securities law. Specifically, this study is concerned with the construction of a prudential regime in light of market integrity. With this in mind, four profiles of the HFT (HFT-algorithm, HFT-subject, HFT-strategy and HFT-tool) which evidence its essence as an Age of Information technology are examined. The informational, virtual, digital substance that is transmitted through networks, among other attributes, require that the object under examination be analyzed in different grounds in comparison to those employed for analyzing traditional trading. Once the characteristic of HFT as a technological innovation have been presented, its inclusion in the structure of Brazilian securities markets trading and its repercussions to the exchange, intermediary institutions and investors are ascertained. The present regulatory regime is evaluated, in order to reflect on its reach in terms of prudential measures and of market integrity, in contrast to the challenges that HFT poses. Lastly, measures to address matters regarding HFT that still require an adequate legal approach are suggested, requiring that both typical regulation and innovative approaches are implemented so as to properly address the technological perspective of the tool.