July 12, 2010

CFTC Announces Members of the CFTC’s Technology Advisory Committee – Committee to Meet on July 14, 2010 to Discuss Best Practices for HFT/ALGO

Washington, DC – The first meeting of the CFTC’s Technology Advisory Committee (TAC), titled “Technological Trading in the Markets,” will be held on July 14, 2010 at 1:00 p.m., at the CFTC’s Washington, DC headquarters’ Hearing Room. The meeting will address the topics of algorithmic (Algo) and high frequency trading (HFT). Andrei Kirilenko, a Senior Financial Economist in the CFTC’s Office of the Chief Economist, will present his paper, High Frequency Traders and Asset Prices; Richard Gorelick of RGM Advisors, LLC, will present a high frequency trading firm’s perspective on HFT; and a representative from FIA will present the paper Market Access Risk Management Recommendations regarding standards on direct market access.

Commissioner Scott D. O’Malia, Chairman of the TAC, has requested that members come to the first meeting prepared to debate the impacts Algo and HFT have on the market and whether or not best practices and/or regulatory standards related to Algo and HFT should be implemented by the Commission.

“The new TAC includes members with a wide range of technology expertise in the financial markets and will be charged with keeping the TAC abreast of new technological advances. With the depth of knowledge of the various TAC members, this new committee can play a vital role assisting the Commission’s efforts to better oversee the evolution of the derivatives markets,” stated Commissioner O’Malia.

Since the last meeting of the TAC five years ago, technology has become a vital component of the futures and derivatives markets. The timing of the first reconstituted TAC meeting coincides with discussions regarding the market events on May 6^th as well as the major financial reform bill soon to be signed into law.

Commissioner O’Malia has requested that TAC members submit papers on various topics, including those listed under related documents. The TAC will have a two-year term, during which time the TAC will conduct public meetings, receive written recommendations from its members and the public, as well as submit reports to the Commission. The TAC will inform the Commission of technological opportunities and make policy recommendations to support the Commission’s mission. Non-TAC members are encouraged to submit papers to the TAC as well to help inform the debate to [email protected].

Staff Contact
Stephen Humenik
(202) 418-5314
Office of Commissioner O’Malia

Media Contacts
Scott Schneider
202-418-5174

R. David Gary
202-418-5085

Last Updated: July 12, 2010