High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
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<strong>High</strong>-<strong>frequency</strong> <strong>trading</strong> <strong>–</strong> a <strong>discussion</strong> <strong>of</strong> <strong>relevant</strong> <strong>issues</strong> May 2013Plausibility checks at the exchange entry to prevent “fat finger errors”2Plausibility checksIllustrationDescriptionCentralCounterpartyTradingParticipantClearingMember• A fat finger error describes errors when inputting textvia keyboard (typo).• When entering an order, typos can have massiveeconomic consequences (e.g. adding a “zero” to theorder size will tenfold increase the size), if they arenot prevented.• Eurex Exchange/<strong>Xetra</strong> check for maximum orderquantities upon reception <strong>of</strong> each order.2Exchange(Eurex Exchange/<strong>Xetra</strong>)• Furthermore, Eurex Exchange/<strong>Xetra</strong> perform amandatory check and <strong>of</strong>fers an optional pricereasonability check.49
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