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High-frequency quantitative trading fees may increase significantly.

On July 26, there was news in the market that the regulatory authorities had formulated a relevant draft, intending to increase the buying and selling fees of high-frequency quantitative trading from the current 0.1 yuan per transaction to 1 yuan, and the cancellation fee for each order would be 5 yuan; the charging method would be calculated by the exchange, issued to the securities firms on a monthly basis, and then charged to customers by the securities firms every quarter.

The Paper learned from industry insiders that the news is true, but it is currently in the stage of soliciting opinions. Industry insiders said that recently the regulator held a meeting on the differentiated charging plan for high-frequency trading to solicit opinions from market institutions. It is understood that some private equity companies participated in the above meeting.

"If the draft is implemented as it is, the cost of high-frequency trading will increase significantly." A quantitative private equity analyst told The Paper, "The current regulatory measures are gradually being refined and targeted, which will help better maintain market fairness."

Not long ago, regulators clarified the identification standards for high-frequency trading. Thepaper.cn learned from the industry that in order to standardize the establishment of program trading commission agreements, the China Securities Association recently drafted and formulated the "Program Trading Commission Agreement (Sample Text)" and gave a definition of "high-frequency trading", that is, investors' trading behavior is considered high-frequency trading if any of the following circumstances exist: a single account in a singleStock ExchangeThe maximum number of orders submitted and cancelled per second reaches more than 300; the maximum number of orders submitted and cancelled per day by a single account on a single stock exchange reaches more than 20,000; or other circumstances recognized by the stock exchange.

It is understood that since the beginning of this year, under the unified deployment of the China Securities Regulatory Commission, the exchanges have continued to strengthen the supervision of programmed trading and promote the implementation of relevant policies and measures.

On June 7, the Shanghai, Shenzhen and Beijing Stock Exchanges respectively issued the "Shanghai Stock Exchange's Implementation Rules for Algorithm Trading Management (Draft for Comments)", "Shenzhen Stock Exchange's Implementation Rules for Algorithm Trading Management (Draft for Comments)" and "Beijing Stock Exchange's Implementation Rules for Algorithm Trading Management (Draft for Comments)", and solicited public opinions from the market.

Relevant officials from the Shanghai and Shenzhen Stock Exchanges responded to reporters' questions on July 16, saying that they are conducting research and demonstration on differentiated charging schemes for high-frequency trading, and will improve the relevant charging mechanism based on full evaluation and measurement to enhance the targeted supervision of high-frequency quantitative trading.

A quantitative private equity insider told The Paper that “the industry has been discussing differentiated charging standards for high-frequency trading, and regulators have also held several discussions.” A substantial increase in high-frequency quantitative trading fees is already a basic expectation of industry insiders, “but the specific pricing can only be determined once the regulatory documents come out.” Several quantitative private equity companies also told The Paper that the industry has been discussing this for a long time and are awaiting notification from regulators.