In our last blog , we discussed liquidity and defined it as a measure of market participants’ ability to trade what they want, when they want, at a mutually agreed upon price for a specific quantity...
FIA PTG Blog: Researchers from the University of California at Berkeley, Vanderbilt University, and the Illinois Institute of Technology published two separate papers that examine the role of high frequency trading (HFT) and its effect on certain aspects of market quality. The research papers ultimately rejected claims that the use of HFT technology has led to “rigged” markets with “phantom” liquidity.
FIA PTG Blog: FIA PTG strongly believes in market transparency. When data on prices and trading activity are accessible to all market participants, markets become more competitive and more efficient at serving the needs of investors and hedgers. That’s why we support efforts to improve the availability of data on Treasury markets.
FIA PTG Blog : In our last piece on the CFTC’s proposed rules on automated trading , we explained why the Commission should focus only on risk controls in its first rulemaking on this topic. However, while we strongly urge the CFTC to set aside the policies and procedures section for now, we’re also enumerating the problems that would arise should they choose to move forward with it, particularly with their proposal for unprecedented access to algorithmic source code.
FIA PTG Blog: Risk controls are the most important aspect of market protection in automated trading. We have long advocated for risk controls for all electronic trading activity. These controls can be developed and implemented by individual market participants, or provided by third parties – including exchanges and clearing firms. The key is not who applies the risk controls, but rather that all activity is covered by risk controls, so that there are consistent safeguards in place to prevent market disruptions, no matter where they arise.
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