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Automated Trading

Automated Trading

FIA, FIA PTG, and FIA EPTA members are working to educate the public on the benefits of automated trading, provide policymakers with expert feedback on regulatory proposals, and promote best practices in risk controls.

Automated trading has become an integral tool for an increasingly large percentage of market participants. The speed, efficiency, and ease of automated trading has made it attractive to the full spectrum of organizations that interact with our markets, including principal traders, banks, asset managers, pension funds, and commercial hedgers. Even individual investors make use of automation and benefit from the increased liquidity and narrower spreads that have resulted from increased automation.

The widespread adoption of automated trading systems has provided a range of benefits, but it also creates the need for updated risk management practices. 

FIA, FIA PTG, and FIA EPTA members have taken a collaborative approach to this issue, bringing together exchanges, brokers, and traders to share expertise, consider best practices, and develop thoughtful guidelines for considering automated trading development and operation. 

Read More:

FIA Best Practices for Exchange Risk Controls Presentation at CFTC TAC Meeting, October 2019
Comments on the Supplemental Proposed Rule on Automated Trading, May 2017
Joint Industry Comments to the CFTC on Proposed Rule on Automated Trading, June 2016
Comments on CFTC's Proposed Rule on Automated Trading, March 2016
Guide to the Development and Operation of Automated Trading Systems, March 2015
Response to the CFTC Concept Release on Risk Controls and System Safeguards for Automated Trading Environments, December 2013 
Drop Copy Recommendations, September 2013
Order Handling Risk Management Recommendations for Executing Brokers, March 2012
Software Development and Change Management Recommendations, March 2012
Recommendations for Risk Controls at Trading Firms, November 2010
Market Access Risk Management Recommendations, April 2010

Latest Activity

“Spoofing": How to Deal with This Tricky Offense and Its Regulatory Guidelines

part of the FIA Law & Compliance Division webinar series
14 January 2016 10:00am to 11:00am EST
This webinar provides an overview of the relevant statutory provisions, rules, and related guidance on spoofing. The session also draws from several recent (and a few not-so-recent) spoofing cases to provide a practical perspective of the types of activity that have been pursued by regulators in the past, and that may be investigated in the future.

Understanding Reg AT

an FIA webinar
16 December 2015 3:30pm to 4:45pm EST
On December 16, 2015, FIA held a webinar focused on educating attendees on the CFTC's new proposed rules on automated trading (referred to as "Regulation AT"). The webinar also identified the market participants impacted by Regulation AT.





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