BERLIN, March 21 (Reuters) - Germany's upper house of
parliament, the Bundesrat, is expected to approve tighter rules
on high-frequency trading on Friday, sources from the opposition
Social Democrats said, enabling the regulation to become law.
Chancellor Angela Merkel's government lacks a majority in
the Bundesrat, where governments of the 16 federal states are
represented, leaving her dependant on opposition support.
Under the planned rules, German banking regulator BaFin will
High-frequency traders use computer algorithms to generate
numerous, lightning-speed automatic trades that make money from
tiny price moves in the market.
(Reporting by Holger Hansen, writing by Alexandra Hudson,
editing by Gareth Jones)