Security - Check Permissions

MFDF - Mutual Fund Directors Forum - HFT Industry Group Releases Market Structure Recommendations

Member Login

Request an account

Sample Banner 2

HFT Industry Group Releases Market Structure Recommendations

The Modern Markets Initiative, an advocacy group supported by several large HFT firms, released its “Principles for Effective Modern Markets” Wednesday. The group is represented by former CFTC Commissioner Bart Chilton, who had previously spoken about the need to "cage the cheetahs," referring to high-frequency traders. The intiative seeks to "demonstrat[e] the benefits of algorithmic or quantitative trading, often referred to as high-frequency trading, in today’s modern markets" and highlight HFT's role in "increasing the integrity of today’s marketplace," according to the release.

The group cites seven principles: market efficiency, fair and equal access, transparency, competition, market stability, simplicity, and sound regulation. In a statement regarding the release, the CEO of the initiative attempted to align the group with investor sentiment that "markets should be simple to use and easier to understand" because "[a] transparent market leads to a more efficient market," which in turn "saves all investors money." He continued that "[w]hen market rules and regulations are clear, fair and enforced, investors both big and small are well-served."
The group's release can be found here.