But even if targeted adjustments are made to the regulatory framework, I believe one thing can be expected: while other factors currently weighing on market activity are eventually going to fade out, tighter regulatory requirements will definitely stay, and this is the “new normal” market participants will have to adapt to.
3.3 High Frequency Trading Let me now turn to another phenomenon whose role in market liquidity is, in my view, larger than some observers think. For the last fifteen years the investment community has witnessed a transformation in the landscape of exchanges, brokers and investors from a trading process that is based on human decision making into an automated electronic high-speed exchange.