FIA Supports CFTC's Upcoming Release of Rule on Automated Trading (with Lofchie Comment)
The Futures Industry Association ("FIA") announced that it supported the imminent release of a CFTC rule on automated trading. The FIA's announcement largely concerned the importance and usefulness of automated trading systems, specifically in providing greater efficiency and ease of trading. FIA also acknowledged that automated trading will present new challenges, and encouraged regulators to (i) make sure that firms implement effective risk controls and (ii) continue to allow for innovation that drives efficiency and productivity in the markets.
Lofchie Comment: FIA's statement may be somewhat premature. Is FIA supporting what it expects the CFTC's rule will propose? Perhaps it is supporting the mere fact that the CFTC is studying the issue.