“Where Are We? And Where Should We Be? Thoughts on MF Global and High Frequency Trading” (Speech)

Address by Commissioner O'Malia

CFTC Commissioner Scott O'Malia addresses two issues: i) MF Global and ii) high-frequency trading. With respect to MF Global, O'Malia argues that the CFTC's rulemakings with respect to investment of customer funds and protection of cleared swaps customer property does not address what happened in MF Global-"I'm not aware of any evidence that the MF Global shortfall was related to investments of customer funds." He also states that the CFTC needs to stop addressing potentially fundamental issues through ad hoc actions. With respect to high frequency trading, O'Malia states that the CFTC needs to foster a thoughtful and coherent debate on the issue.

Cross References: CEA Section 4d; CFTC Rule 1.25; 76 FR 78776; Lofchie's Guide to CPO/CTA Regulation: Chapter 12, Insolvency.