New TABB Research Analyzes Rule-Making Process for Futures Markets amidst Continuing HFT Debate

Report Focuses on CFTC’s “Concept Release on Risk Control Systems and Safeguards for Automated Trading Environments”

NEW YORK & LONDON--()--New research by TABB Group explores recent efforts by the CFTC to stay in front of current issues, focusing on marketplace views of the “Concept Release on Risk Control Systems and Safeguards for Automated Trading Environments,” as industry, regulatory and public debates on high frequency trading continue amidst the recent media firestorm created by “Flash Boys,” the new book by Michael Lewis.

The report, "New Rules in Futures Markets: Industry Perspectives on HFT and Enforcement," is based on conversations with futures market participants to gauge expectations about possible regulatory initiatives as outlined in the Concept Release and learn firsthand market consensus for the rule-making process. Interviews focused on the likelihood of regulatory action, whether political activities matter, how jurisdictional issues play a role and whether market participants are shaping business strategies as a result of the process.

Of those interviewed, “Very few have factored the rule-making process into their business model, citing unexpected rule changes as being resource-intensive and often a business distraction, says Matt Simon, a TABB principal and head of futures research, who co-authored the report with contributing analyst Andy Yemma. However, the majority continue to favorably contrast a slow, deliberative approach to more reactive approaches taken by regulators in some offshore markets.

Based on these interviews, TABB believes that regulatory changes should be principles-based, with any actual adjustments to risk controls and market structure to evolve at the contract level.

The 8-page report with 4 exhibits can be downloaded by TABB Group Research Alliance Derivatives clients and qualified media at http://www.tabbgroup.com/Login.aspx. For more information or to purchase the report, write to info@tabbgroup.com.

About TABB Group

Based in New York and London, TABB Group is the research and consulting firm focused exclusively on capital markets, based on the interview-based, “first-person knowledge” research methodology developed by Larry Tabb.

Contacts

martinrabkinink
Martin Rabkin, 914-420-5739
mrabkin@martinrabkinink.com

Release Summary

New TABB Research Analyzes CFTC Rule-Making Process for Futures Markets amidst Continuing HFT Debate

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Contacts

martinrabkinink
Martin Rabkin, 914-420-5739
mrabkin@martinrabkinink.com