Electronic Trading

26 September 2023

FIA, FIA PTG, and FIA EPTA members are working to educate the public on the benefits of electronic trading, provide policymakers with expert feedback on regulatory proposals, and promote best practices in risk controls.

Electronic, including automated trading has become an integral tool for an increasingly large percentage of market participants. The speed, efficiency, and ease of automated trading has made it attractive to the full spectrum of organizations that interact with our markets, including principal traders, banks, asset managers, pension funds, and commercial hedgers. Even individual investors make use of automation and benefit from the increased liquidity and narrower spreads that have resulted from increased automation.

The widespread adoption of electronic trading systems has provided a range of benefits, but it also creates the need for updated risk management practices. 

FIA, FIA PTG, and FIA EPTA members have taken a collaborative approach to this issue, bringing together exchanges, brokers, and traders to share expertise, consider best practices, and develop thoughtful guidelines for considering electronic trading development and operation. 

Read More:

FIA Best Practices for Exchange Volatility Control Mechanisms, September 2023

FIA - FIA PTG Response to Electronic Trading Risk Principles, August 2020

FIA Best Practices for Exchange Risk Controls Presentation at CFTC TAC Meeting, October 2019

Comments on the Supplemental Proposed Rule on Automated Trading, May 2017

Joint Industry Comments to the CFTC on Proposed Rule on Automated Trading, June 2016

Comments on CFTC's Proposed Rule on Automated Trading, March 2016

Guide to the Development and Operation of Automated Trading Systems, March 2015

Response to the CFTC Concept Release on Risk Controls and System Safeguards for Automated Trading Environments, December 2013 

Drop Copy Recommendations, September 2013

Order Handling Risk Management Recommendations for Executing Brokers, March 2012

Software Development and Change Management Recommendations, March 2012

Recommendations for Risk Controls at Trading Firms, November 2010

Market Access Risk Management Recommendations, April 2010

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