The FIA Principal Traders Group has hired Jim Overdahl, a former chief economist at both the Securities and Exchange Commission and Commodity Futures Trading Commission, to explain the views of principal trading firms on public policy issues. Dr. Overdahl, who has testified before Congress on behalf of both agencies, will also work to improve the public understanding of the role that principal trading firms play in the financial and commodity markets. Overdahl currently is and will remain a VP at NERA Economic Consulting, according to the release.
The appointment comes as both securities and commodities regulators are examining market structure issues and the causes of May 6th flash crash, while considering new rules that could impact principal trading firms (a.k.a. proprietary trading firms) that engage in high frequency trading strategies
“There has been a lot of confusion and misunderstanding in the media about the role that principal trading firms are playing in exchange-traded markets,” commented Don Wilson, chairman of the FIA PTG and chief executive officer of DRW Trading Group, a Chicago-based principal trading firm, in the release. “Our goal in asking Jim Overdahl to be our spokesman is to provide the media with a better understanding of today’s electronic markets and to articulate our views on public policy issues that affect these markets,” stated Wilson.
The FIA PTG is an offshoot of the Futures Industry Association, the leading trade organization for the futures industry.
According to the release, the FIA Principal Traders Group is a forum for firms trading their own capital to identify and discuss issues confronting the principal traders community. Membership in the FIA PTG is limited to firms that trade for their own account rather than on behalf of customers. The group works to define common positions on public policy issues and advance the group’s collective interests through the FIA, improve public understanding of the constructive role played by principal trading groups in the exchange-traded derivatives markets; and promote cost-effective, equal and transparent access to U.S. and non-U.S. markets.
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio