Monday, 1 September 2014
Last updated 3 days ago
May 7 2014 | 12:13pm ET
High-frequency trading has been called a lot of things in recent months, but if the Commodity Futures Trading Commission has its way, it will lose one epithet: unregulated.
The CFTC is preparing to propose a rule covering automated trading, which lies at the heart of high-frequency trading. The practice has long been somewhat controversial, but has been catapulted to the forefront by a recent book that alleges it is, in effect, insider-trading.
The CFTC has been looking into HFT for months, putting out a concept release on the subject in September and seeking input from industry players. It is not clear when a rule might be issued, or what, exactly, it will cover.
“I understand that commission staff is starting to work on a proposed rule,” Commissioner Scott O’Malia said.
O’Malia, a Republican, told a Tabb Forum conference that the CFTC needs more money to invest in the technology needed to detect market malfeasance. Currently, the agency lacks the technology needed to oversee the millions of messages sent by traders to futures exchanges every day.
“Without such tools, the commission cannot effectively oversee today’s automated markets,” He said. The CFTC needs to “design the 21st-century mousetrap to spot disruptive and manipulative trading practices—at any speed.”
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...