The FIA Principal Traders Group today issued the following statement in response to the issuance of several proposed rules by the Financial Industry Regulatory Authority.
“We are glad to see FINRA taking steps to improve the transparency of the U.S. equity and fixed income markets. We believe today’s electronic markets are already far more transparent than a decade ago, but there is more that should be done. While we have not yet analyzed today’s proposals in detail, we believe these initiatives could improve FINRA’s ability to oversee off-exchange trading and provide significant benefits to the public.
“We also welcome FINRA’s efforts to improve the surveillance of algorithmic trading. We think there is plenty of evidence to show that automation has been enormously beneficial for markets and investors, but we also recognize that regulators need to keep up with advances in technology and market structure. We encourage all market regulators to leverage the evolving technology landscape and improve their ability to analyze the vast amount of empirical data that today’s electronic markets are capable of producing.
“In the coming weeks, we expect to carefully examine the specifics of the proposals discussed at today’s meeting. Our guiding principles in evaluating these proposals, as with all regulatory proposals, are to base our recommendations on a thoughtful analysis of evidence and to make sure that the benefits outweigh the costs. We look forward to providing FINRA with our comments.”