Italy’s ICBPI deploys Milan trading tools
Italian banking group Instituto Centrale Banche Popolare Italiane has introduced a new trading and recording system across its Milan operations, which it says will help it to better keep up with changing regulation and offer a better service for its traders.
ICBPI is an Italian confederation of 68 regional banks. Founded in 1939, the group is itself a part of the Confederation Internationale des Banques Populaires. Its role is to provide support services to the Italian banks.
The new Etrali Trading Solutions system moves ICBPO from its previous TDM system to SIP, with a ‘smart turret’ and embedded apps designed to help keep Italy’s banks ahead of industry regulations.
“We wanted to provide a better quality service for our traders; Open Trade is the leader in the market and Etrali Trading Solutions’ expertise and support is second to none,” said Pablito Rosa, head of ICT Security and Compliance and ICT production for ICBPI. “The system architecture is completely flexible and integrates with rich ecosystems, reducing back end complexity and size. The smart turret is truly innovative and is ideal for banks looking to move to a unified solution quickly and with minimal disruption.”
Italy has just introduced a special ‘HFT tax’ on order changes and cancellations at 0.02% if they are made within 500 milliseconds. The move has reignited controversy in Europe over the role of high-frequency traders, and whether HFT harms or benefits markets. Italy’s Borsa Italiana had previously introduced charging for firms that cancel more than 100 orders for every one they execute, in April 2012.
In Germany, firms practicing HFT have to register with the authorities, and provide details of their algorithms and how they operate on demand. At the European level, the EC’s upcoming MiFID II legislation contains similar proposals to ensure adequate testing, maintenance and regulatory oversight of algos, which were issued as non-binding automated trading guidelines as far back as February 2012.