March 27, 2012

The U.S. Commodity Futures Trading Commission selected Larry Tabb, founder and CEO of Tabb Group, to join its subcommittee on automated and high frequency trading.

In this role, Tabb will assist the CFTC Technical Advisory in creating a definition of high frequency trading within the context of automated trading systems, according to today’s announcement by Tabb Group.

“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,” according to CFTC Commissioner Scott O’Malia in a letter to members. “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,” wrote O’Malia.

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.

CFTC chief economist Dr. Andrei Kirilenko will serve as the committee’s chairman, with assistance from 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.

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 ...