Committee to continue discussion of high frequency and algorithmic trading practices and the role of technology in pre- and post-trade transparency in implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and in the Flash Crash.
The second meeting of the CFTC’s Technology Advisory Committee (TAC), titled “Technology: Achieving the Statutory Goals and Regulatory Objectives of the Dodd-Frank Act,” will be held on October 12, 2010 at 1:00 p.m., at the CFTC’s Washington, DC headquarters’ Hearing Room. The TAC will continue its discussion of computerized trade strategies and their role in the events of May 6, 2010 as they inform and guide regulatory reforms under Dodd-Frank. Andrei Kirilenko, a Senior Financial Economist in the CFTC’s Office of the Chief Economist, will summarize the May 6, 2010 joint CFTC and SEC staff report on which he worked and present his joint paper, The Flash Crash: The Impact of High Frequency Trading on an Electronic Market.
As the Commission focuses on new manipulation and antidisruptive trading practices in the Dodd-Frank rulemakings, the events of May 6, 2010 are equally informative as to the role of technology in the futures and swaps markets.
“While I do not believe that the Flash Crash was the direct result of reckless misconduct in the futures market, I question what the CFTC could have done if the opposite were true. When does high frequency or algorithmic trading cross the line into being disruptive to our markets? And, along those same lines, who is responsible when technology goes awry? Do we treat rogue algorithms like rogue traders? These are the issues I hope to explore at our October 12th meeting,” stated Commissioner O’Malia.
Additional panels will focus on the role technology plays in pre- and post-trade transparency and how swap execution facilities (SEFs) and swap data repositories (SDRs) achieve these objectives. Commission staff will present on current rulemakings and the technological implications for interim data collection. Panelists will highlight the technological hurdles and their impact on trading behavior.
The TAC members have been selected for their knowledge of the technological and market innovations in existent financial markets, and have been charged with keeping the CFTC abreast of the new technological advances that the Commission will encounter as SEFs and SDRs emerge in the upcoming months.
The TAC meeting is open to the public and will be webcast via the internet. Audio of the meeting will be available via a listen-only conference call.
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What: |
Technology Advisory Committee Meeting |
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Location: |
CFTC Headquarters lobby-level Hearing Room, 1155 21st Street, NW, Washington, DC 20581 |
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Date: |
October 12, 2010 |
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Time: |
1:00 p.m. – 5:00 p.m. |
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Viewing/Listening Information: The CFTC has made available the following options to access the meeting: |
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Watch a live broadcast of the meeting via webcast on www.cftc.gov |
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2. |
Call in to a toll-free telephone line to connect to a live audio feed. |
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Call in participants should be prepared to provide their first name, last name and affiliation. Conference call information is listed below: |
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Domestic Toll Free: 1-866-844-9416 |
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