The FIA Principal Traders Group issued the following statement in connection with a Sept. 20 hearing held by the Securities, Insurance, and Investment Subcommittee of the Senate Banking Committee entitled “Computerized Trading: What Should the Rules of the Road Be?” The following statement can be attributed to FIA PTG regarding the Senate Banking hearing:
"The Futures Industry Association Principal Traders Group is a trade association of over 30 firms that trade their own capital in exchange-traded markets, and its membership does not include banks or hedge funds. While FIA PTG members do not all trade in the same way, many of them rely on automated trading technology and high-speed connections to exchanges, and they play a very important role in maintaining liquidity in these markets.
"FIA PTG supports efforts to help ensure the safety and soundness of the market and has been a leader in helping create stronger, more robust trading infrastructure by developing a number of recommended risk controls and best practices for trading firms. FIA PTG has supported smart regulatory policies that reduce unusual market events, including the creation of circuit breakers and limit-up/limit-down rules to reduce extreme volatility. FIA PTG also supported the creation of a permanent electronic audit trail to help detect and prevent abuse and increase the transparency of markets.
"As we work together to further improve market infrastructure, we must also preserve the meaningful improvements in market quality that have occurred as markets have become more automated and competitive. Today, trading costs are lower, markets are deeper and more liquid, and prices better reflect information about the value of stocks and commodities. Those improvements benefit everyone who relies upon markets, including long-term and individual investors."