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FIA PTG responds to CFTC’s proposed automated trading rule

FIA PTG responds to CFTC’s proposed automated trading rule

24 November 2015 3:15pm EST

Washington, D.C.—The FIA Principal Traders Group released a statement following the CFTC’s open meeting today to discuss the proposed rule on automated trading. 

“FIA PTG has been engaged in the public policy dialogue on automated trading for years now, and we appreciate the significant amount of time and effort the CFTC staff put into this rule,” said Rob Creamer, Chairman of FIA PTG.  “The Commissioners have emphasized a data-driven approach and have referenced standards that follow industry best-practices, including pre-trade risk controls.  We’re hopeful that the rules issued today reflect those ideals.  We will be working with FIA to carefully review the proposed rules and analyze their potential implications. We’ll pay particularly close attention to the issue of access to proprietary algorithms and the intellectual property concerns raised by Commissioner Giancarlo.”

Automated trading has been broadly adopted by market participants. Its growth has provided a multitude of benefits to the market, while also prompting updates to risk management practices.

FIA PTG members have extensive experience in automated trading systems and have been proactively implementing principles-based risk management.  Together with FIA and other industry partners, FIA PTG has published six papers over the past five years that cover a broad range of guidelines, considerations, and recommendations for automated trading.  The two most recent publications are a detailed response to the CFTC’s Concept Release on Risk Control and System Safeguards for Automated Trading Environments and a comprehensive Guide to the Development and Operation of Automated Trading Systems.   

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