German upper house seen backing high-speed trading rules-sources


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 supervise trading.

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)

Story Copyright © 1999-2014 Reuters HedgeWorld All rights reserved.