On June 3, Rob Creamer, Chairman of the FIA Principal Traders Group and the CEO of Geneva Trading, took part in a discussion on high frequency trading and data surveillance organized by the Commodity Futures Trading Commission’s Technology Advisory Committee. Missed the discussion? Here are five key takeaways from Creamer’s remarks:
- Automated trading benefits the market by lowering trading costs, making markets more liquid, and reducing price discrepancies across related markets.
- Automated trading has made market access fairer and more attainable. “Access to the futures markets no longer requires you to stand in a trading pit and fight for a good seat at the table,” Creamer said.
- Compared to the fragmented structure of the equities market, the simplicity of the futures model improves risk management, centralizes data, and levels the playing field.
- Regulators should conduct empirical data analysis before making determinations about the health of the industry. Decisions should be based on facts, not hyperbole.
- As the CFTC develops data surveillance practices, the agency should avoid “reinventing the wheel” and instead should leverage the work already being done by SROs to conduct rigorous, efficient, and flexible market analysis.