The complex Event Processing Engine (CEP), which is at the heart of decision-making in algo-based trading systems, is used for order management and risk management. Academic definitions vary, which is why we summarize the undisputed facts on which analysts most agree. “Throughout the literature, AT is considered a tool for professional distributors that can observe market parameters or other information in real time and automatically generates/executes business decisions without human intervention” (Gomber et al. 2011, p. 11). The authors also list real-time market observation and automated order generation as key features of algorithmic traders. These elements are indispensable in most definitions of algorithmic commerce. For example, chaboud et al. (2009): “[I]n algorithmic trading (AT) directly connects computers to trading platforms and places orders without immediate human intervention. Computers monitor market data and, possibly, other information at very high frequency and return trading instructions based on an integrated algorithm, often in milliseconds” (p.
1), and Domowitz and Yegerman (2006) state: “W]e generally define algorithmic transactions as the automated and computerized execution of stock orders via direct market access channels, generally for the purpose of: a specific benchmark” (p. 1). A stricter regulatory definition was provided by the European Commission in the proposal to revise the Markets in Financial Instruments Directive (MiFID) in 2011. . . .