Wednesday, 1 October 2014
Last updated 6 min 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.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...