MiFID II and recent supervisory guidance from the Financial Conduct Authority and Prudential Regulatory Authority require firms in scope of the rules to closely supervise their algorithmic trading...
FIA, FIA PTG, and FIA EPTA members are working to educate the public on the benefits of automated trading, provide policymakers with expert feedback on regulatory proposals, and promote best practices in risk controls.
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 automated 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 automated trading development and operation.
Response to the CFTC Concept Release on Risk Controls and System Safeguards for Automated Trading Environments, December 2013
On May 4, FIA submitted comments to the International Organization of Securities Commissions about how trading venues can keep order amid extreme volatility. FIA noted that exchange-traded...
FIA, along with the Association for Financial Markets in Europe and UK Finance, submitted comments about algorithmic trading policies to the Bank of England’s Prudential Regulatory Authority on...