Tabb Group announced today that the U.S. Commodity Futures Trading Commission selected Larry Tabb, founder and CEO, to assist their CFTC Technical Advisory Committee as a member of its Subcommittee of Automated and High Frequency Trading (HFT) to create a definition for high frequency trading within the context of automating trading systems.
The subcommittee consists of four working group examining specific areas: the definition of high frequency trading; determining the need for multiple categories of high frequency trading; oversight, surveillance and economic analysis; and market microstructure issues. Each working group will develop written recommendations for consideration and adoption by the full Technology Advisory Committee.
According to CFTC Commissioner Scott O'Malia in a letter to subcommittee members, "There is currently no consensus as to the definition of HFT, thereby impeding the ability to have a public debate as to the impact of such trading on the markets. If there are to be corresponding policy decisions, regulators, markets, market participants and the public need a common understanding of the activities about which they are deliberating."
CFTC chief economist Dr. Andrei Kirilenko will serve as the subcommittee's chair, assisted by Commission staff from various divisions and observers from other federal government agencies.
The first of three public meetings of the four working groups will be held on March 29, 2012 at the CFTC's headquarters in Washington, D.C.