Programmatic trading new regulations full moon, lowering frequency will become a new trend in quantitative investment.

On July 7th, the "Implementation Rules for Programmatic Trading Management" officially took effect, and it has been one month since the new regulations were implemented. How is the specific implementation situation? Abnormal instantaneous declaration rate, frequent cancellation of orders, frequent manipulation of prices, and large transactions in a short period of time are usually closely related to high-frequency programmatic trading, which is also a focus of the new regulations. However, the core of the new regulations is to regulate rather than stifle. The quantitative industry has also shifted from "microsecond speed competition" to "medium and low frequency strategy effectiveness competition", and quantitative institutions need to shift from "speed competition" to "quality competition". Industry insiders say that the new regulations will optimize market ecology. On the one hand, the quality of liquidity improves. By reducing false liquidity such as "pump and dump trading", genuine supply and demand are more easily reflected in prices. On the other hand, fairness is enhanced. Weakening the technical advantages of high-frequency trading, protecting the interests of small and medium-sized investors.