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FIA Principal Traders Group

899 bytes added, 13:25, 14 August 2017
|location = <!-- Headquarters city, state, country -->
|products = Lobby group formed by the FIA to represent principal traders that trade only on their own accounts
|keypeople = <!-- Top couple of people in organization, or blank -->[[Rob Creamer]]|twitter = <!-- Organization's Twitter ID, e.g. JohnLothian, or leave blank -->FIAPTG|homepage = <!-- No web site? Just leave this line blank -->https://ptg.fia.org/
|press = <!-- Link to where press releases can be found, or leave blank to omit -->
}}
Principal Traders Group (PTG) is a lobby group formed by the [[Futures Industry Association]] (FIA) to represent [[principal]] traders (i.e. independent [[proprietary trading]] firms that trade only on their own accounts).<ref>{{cite web|url=http://www.forbes.com/2010/08/17/high-frequency-traders-rebranding-personal-finance-principal-traders.html?partner=financial_newsletter|name=High-Frequency Traders Get A New Name|org=Forbes|date=August 17, 2010}}</ref> These firms came under heightened scrutiny for trading practices such as [[high frequency trading]] that may have contributed to [[Wall Street]]'s May 6, 2010 "[[flash crash]]."
The group is chaired by [[Donald WilsonRob Creamer]], the president and CEO of [[Geneva Trading USA, LLC]]. He replaced [[Don Wilson]], head of Chicago-based [[DRW Trading Group]], in 2013 as chair. Most of the 24 member firms are based in Chicago.<ref>{{cite web|url=http://www.reuters.com/article/idUSN1613832220100616|name=US lobby group formed on high-frequency trade|org=Reuters|date=June 17, 2010}}</ref> PTG appointed as its spokesperson [[James Overdahl]] was appointed as , the groupformer chief economist for the [[SEC]] and the [[CFTC]]. ==Mission==The Group's spokesmanstated mission is to provide a forum for firms trading their own capital to identify and discuss issues confronting the PTG community; Define common positions on public policy issues and advance the group collective interests through the FIA;Improve public understanding of the constructive role played by the wide variety of individual trading groups in the exchange-traded derivatives markets; and Promote cost-effective, transparent access to U.S. and non-U.S. markets.<ref>{{cite web|url=http://www.futuresindustry.org/ptg/mission.asp|name=Mission|org=FIA|date=January 23, 2014}}</ref>
== History ==
While FIA PTG members do not all trade in the same way, many of them rely on automated trading technology and high-speed connections to exchanges.
== Papers and Statements ==In August of 2012, Membership in the FIA Principal Traders Group is limited to firms trading their own capital in exchange-traded markets. Principal traders are active in a variety of asset classes such as [[futures]], [[equities]], [[foreign exchange]], and [[FIA European Principal Traders Associationfixed income]] issued the following joint statement in response to the disruptions that occurred , and on a variety of exchanges, both in the U.S. [[equity]] markets on Augand abroad. 1Trading firms engage in automated, 2012:manual and hybrid methods of trade generation and execution encompassing various strategies. Not all principal traders are high-frequency traders.
“Our member firms share In June 2010, with high-frequency trading getting a lot of controversy from the concern expressed by many observers and market participants public, Principal Traders Group serves as an organized means to respond to inquiries about the problems affecting Knight Capital high frequency trading and allows the disruptions these problems caused in member firms to identify best practices within the Ufinancial industry.S<ref>{{cite web|url=http://www. equity marketsfuturesmag. Rapid advances in trading technology have brought very substantial benefits for those who use and rely on marketscom/2010/06/16/high-frequency-traders-get-an-ally|name=High frequency traders get an ally|org=Futures|date=January 23, but there is no question that they also have introduced new sources of risk. 2014}}</ref>
Over the last several years== Papers and Statements ==On May 1, 2013, FIA PTG and FIA ETPA have devoted considerable time and effort Principal Traders Group issued a response to improving risk controls and establishing best practices to prevent an article in the Wall Street Journal alleging that high-frequency traders were taking advantage of a "loophole" in the [[CME Group]]'s market disruptions and strengthen market resiliencydata systems. We have issued several reports with specific recommendations for trading firms, brokers The Principal Traders Group said they were "surprised and exchanges, and we have worked with regulators and legislators in disappointed at the Umisleading article" published by the Journal.S. and They said the EU to implement meaningful article took an inherent feature of all markets out of context and effective reforms.  Earlier this yeardistorted it, the FIA PTG and FIA EPTA issued creating a paper false impression that recommended a number of specific tests and controls that trading firms should consider whenever they change their technology systems. Technology is a core component of modern the CME’s markets, and we strongly believe that managing technological change must be an essential element of risk management for all market participantswere fundamentally unfair. The recommendations draw on the extensive experience that our member firms have Group praised exchanges in the field of electronic general for reducing latency and variability in their trading systems and are designed to provide a framework said that all trading firms can use to mitigate risk across the entire software life cycle.  It is not clear yet what caused the problems at Knight Capital, but once the facts markets today are outmore open, we will review our recommendations transparent and amend if needed. Knight’s difficulties highlight how quickly the market punishes trading mistakes, but also how important it is for market participants to work with regulators to minimize threats to market stability. We stand ready to share our expertise with regulators as efficient than they examine what happened at Knight Capital and consider what reforms are necessary to safeguard our marketshad ever been.<ref>{{cite web|url=http://www.futuresindustry.org/ptg/downloads/PTG-Statement-on-WSJ-CME-article.pdf|name=Press Release|org=Futures Industry|date=August 3January, 20122014}}</ref>
In August of 2012, FIA Principal Traders Group and [[FIA European Principal Traders Association]] issued a joint statement in response to the market disruptions on Aug. 1, 2012. They said their member firms shared in the concerns about the disruptions in the equity markets that resulted from Knight Capital's problems, and that they had recommended specific tests and controls trading firms should consider. They said they planned to review their recommendations once the facts about the causes of Knight Capital's problems had been revealed. <ref>{{cite web|url=http://www.futuresindustry.org/ptg/|name=Press Release|org=Futures Industry|date=August 3, 2012}}</ref>
In November 2010, PTG published a white paper entitled ''Recommendations for Risk Controls for Trading Firms''. The paper highlights its recommended policies and procedures for trading operations and electronic trading systems in such areas as:
*Contingency plans for trading interruptions; and
*Physical and electronic security.<ref>{{cite web|url=http://www.futuresindustry.org/downloads/Trading_Best_Pratices.pdf|name=Recommendations for Risk Controls for Trading Firms|org=FIA Principal Traders Group|date=June 24, 2011}}</ref>
== Membership ==
PTG membership is limited to firms which trade solely their own capital. Members engage in traditional, hybrid, and [[high-frequency trading]], in an assortment of asset classes. As of 2013, in has 29 members. Member firms include:
*[[Allston Trading]]
*[[Atlantic TradingCitadel]]*[[Bluefin TradingCognitive Capital]]*[[Chopper TradingDRW]]*[[Consolidated Trading]]*[[The DRW DV Trading Group]]
*[[Eagle Seven]]
*[[Endeavor TradingFlow Traders US, LLC]]
*[[Geneva Trading]]
*[[GETCO]]
*[[Hard Eight Futures]]
*[[HTG Capital Partners]]
*[[IMC ChicagoFinancial Markets]]*[[Infinium Capital ManagementJump Trading]]*[[Kottke AssociatesKCG Holdings]]*[[Liger InvestmentsKetchum Trading]]
*[[Marquette Partners]]
*[[Nico Holdings LLC]]
*[[Optiver]]
*[[Quantlab Financial]]
*[[RGM TradingAdvisors]]*[[Spot Sun Trading]]*[[Tibra Trading AmericaTeza Technologies]]
*[[Tower Research Capital]]
*[[Traditum GroupTradeForecaster Global Markets LLC]]
*[[WH Trading]]
*[[XR Trading]]
== Key People ==
*[[Donald WilsonRob Creamer]], Chair*[[James Overdahl]], SpokesmanChairman
*[[Joanna Mallers]], Secretary
[[Category:Industry Associations]]
[[Category:Futures Industry Association]]
[[Category:Principal Traders Group]]