Difference between revisions of "FIA Principal Traders Group"

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|location =      <!-- Headquarters city, state, country -->
 
|location =      <!-- Headquarters city, state, country -->
 
|products =      Lobby group formed by the FIA to represent principal traders that trade only on their own accounts
 
|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 -->
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|keypeople =      [[Rob Creamer]]
|twitter =        <!-- Organization's Twitter ID, e.g. JohnLothian, or leave blank -->
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|twitter =        FIAPTG
|homepage =      <!-- No web site?  Just leave this line blank -->
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|homepage =      https://ptg.fia.org/
 
|press =          <!-- Link to where press releases can be found, or leave blank to omit -->
 
|press =          <!-- Link to where press releases can be found, or leave blank to omit -->
 
}}
 
}}
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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]]."
 
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 Wilson]], the head of Chicago-based [[DRW Trading Group]]. 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> [[James Overdahl]] was appointed as the group's spokesman.
+
The group is chaired by [[Rob 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 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]], the former chief economist for the [[SEC]] and the [[CFTC]].
  
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.
+
==Mission==
 +
The Group's stated 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 ==
 
== 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 ==
+
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 [[fixed income]], and on a variety of exchanges, both in the U.S. and abroad. Trading firms engage in automated, manual and hybrid methods of trade generation and execution encompassing various strategies. Not all principal traders are high-frequency traders.
In August of 2012, FIA Principal Traders Group and [[FIA European Principal Traders Association]] issued the following joint statement in response to the disruptions that occurred in the U.S. [[equity]] markets on Aug. 1, 2012:
+
  
“Our member firms share the concern expressed by many observers and market participants about the problems affecting Knight Capital and the disruptions these problems caused in the U.S. equity markets. Rapid advances in trading technology have brought very substantial benefits for those who use and rely on markets, but there is no question that they also have introduced new sources of risk.
+
In June 2010, with high-frequency trading getting a lot of controversy from the public, Principal Traders Group serves as an organized means to respond to inquiries about high frequency trading and allows the member firms to identify best practices within the financial industry.<ref>{{cite web|url=http://www.futuresmag.com/2010/06/16/high-frequency-traders-get-an-ally|name=High frequency traders get an ally|org=Futures|date=January 23, 2014}}</ref>
  
Over the last several years, FIA PTG and FIA ETPA have devoted considerable time and effort to improving risk controls and establishing best practices to prevent market disruptions and strengthen market resiliencyWe have issued several reports with specific recommendations for trading firms, brokers and exchanges, and we have worked with regulators and legislators in the U.S. and the EU to implement meaningful and effective reforms.
+
== Papers and Statements ==
 
+
On May 1, 2013, FIA Principal Traders Group issued a response to an article in the Wall Street Journal alleging that high-frequency traders were taking advantage of a "loophole" in the [[CME Group]]'s market data systemsThe Principal Traders Group said they were "surprised and disappointed at the misleading article" published by the Journal. They said the article took an inherent feature of all markets out of context and distorted it, creating a false impression that the CME’s markets were fundamentally unfair. The Group praised exchanges in general for reducing latency and variability in their trading systems and said that markets today are more open, transparent and efficient than they had 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=January, 2014}}</ref>
Earlier this year, the FIA PTG and FIA EPTA issued a paper 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 markets, and we strongly believe that managing technological change must be an essential element of risk management for all market participants. The recommendations draw on the extensive experience that our member firms have in the field of electronic trading and are designed to provide a framework 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 are out, we will review our recommendations 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 they examine what happened at Knight Capital and consider what reforms are necessary to safeguard our markets.<ref>{{cite web|url=http://www.futuresindustry.org/ptg/|name=Press Release|org=Futures Industry|date=August 3, 2012}}</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:
 
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:
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*Contingency plans for trading interruptions; and
 
*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>
 
*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 ==
 
== 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. Member firms include:
+
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]]
 
*[[Allston Trading]]
*[[Bluefin Trading]]
+
*[[Citadel]]
*[[Chicago Trading Company]]
+
*[[Cognitive Capital]]
*[[Chopper Trading]]
+
*[[DRW]]
*[[Consolidated Trading]]
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*[[DV Trading]]
*[[DRW Holdings, LLC|The DRW Trading Group]]
+
 
*[[Eagle Seven]]
 
*[[Eagle Seven]]
 
*[[Flow Traders US, LLC]]
 
*[[Flow Traders US, LLC]]
*[[Gator Trading Partners, LLC]]
 
 
*[[Geneva Trading]]
 
*[[Geneva Trading]]
*[[GETCO]]
 
 
*[[Hard Eight Futures]]
 
*[[Hard Eight Futures]]
 
*[[HTG Capital Partners]]
 
*[[HTG Capital Partners]]
*[[IMC Chicago]]
+
*[[IMC Financial Markets]]
*[[Infinium Capital Management]]
+
 
*[[Jump Trading]]
 
*[[Jump Trading]]
 +
*[[KCG Holdings]]
 
*[[Ketchum Trading]]
 
*[[Ketchum Trading]]
*[[Kottke Associates]]
 
*[[Liger Investments]]
 
*[[Liquid Capital]]
 
 
*[[Marquette Partners]]
 
*[[Marquette Partners]]
*[[Nico Holdings LLC]]
 
 
*[[Optiver]]
 
*[[Optiver]]
 
*[[Quantlab Financial]]
 
*[[Quantlab Financial]]
*[[RGM Trading]]
+
*[[RGM Advisors]]
*[[Spot Trading]]
+
 
*[[Sun Trading]]
 
*[[Sun Trading]]
*[[Tibra Trading America]]
+
*[[Teza Technologies]]
 
*[[Tower Research Capital]]
 
*[[Tower Research Capital]]
 
*[[TradeForecaster Global Markets LLC]]
 
*[[TradeForecaster Global Markets LLC]]
*[[Traditum Group]]
+
*[[WH Trading]]
 
*[[XR Trading]]
 
*[[XR Trading]]
  
 
== Key People ==
 
== Key People ==
*[[Donald Wilson]], Chair
+
*[[Rob Creamer]], Chairman
*[[James Overdahl]], Spokesman
+
 
*[[Joanna Mallers]], Secretary
 
*[[Joanna Mallers]], Secretary
  
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[[Category:Industry Associations]]
 
[[Category:Industry Associations]]
 
[[Category:Futures Industry Association]]
 
[[Category:Futures Industry Association]]
 +
[[Category:Principal Traders Group]]

Latest revision as of 07:25, 14 August 2017

FIA 546 2019 Expo Digital Ads-Final.jpg

Principal Traders Group (PTG)
FIA logo.gif
Founded 2010
Products Lobby group formed by the FIA to represent principal traders that trade only on their own accounts
Key People Rob Creamer
Twitter @FIAPTG
Web site https://ptg.fia.org/

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).[1] 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 Rob 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 member firms are based in Chicago.[2] PTG appointed as its spokesperson James Overdahl, the former chief economist for the SEC and the CFTC.

Mission

The Group's stated 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.[3]

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.

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 fixed income, and on a variety of exchanges, both in the U.S. and abroad. Trading firms engage in automated, manual and hybrid methods of trade generation and execution encompassing various strategies. Not all principal traders are high-frequency traders.

In June 2010, with high-frequency trading getting a lot of controversy from the public, Principal Traders Group serves as an organized means to respond to inquiries about high frequency trading and allows the member firms to identify best practices within the financial industry.[4]

Papers and Statements

On May 1, 2013, FIA Principal Traders Group issued a response to an article in the Wall Street Journal alleging that high-frequency traders were taking advantage of a "loophole" in the CME Group's market data systems. The Principal Traders Group said they were "surprised and disappointed at the misleading article" published by the Journal. They said the article took an inherent feature of all markets out of context and distorted it, creating a false impression that the CME’s markets were fundamentally unfair. The Group praised exchanges in general for reducing latency and variability in their trading systems and said that markets today are more open, transparent and efficient than they had ever been.[5]

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. [6]

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:

  • Access and oversight of staff;
  • Testing and error control systems;
  • Pre- and post-execution risk management protections;
  • Contingency plans for trading interruptions; and
  • Physical and electronic security.[7]

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:

Key People

References

  1. High-Frequency Traders Get A New Name. Forbes.
  2. US lobby group formed on high-frequency trade. Reuters.
  3. Mission. FIA.
  4. High frequency traders get an ally. Futures.
  5. Press Release. Futures Industry.
  6. Press Release. Futures Industry.
  7. Recommendations for Risk Controls for Trading Firms. FIA Principal Traders Group.