FIA Principal Traders Group

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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

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 Donald Wilson, the head of Chicago-based DRW Trading Group. Most of the 24 member firms are based in Chicago.[2] James Overdahl was appointed as the group's spokesman.

History

Products and Services

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.[3]

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:

Key People

References

  1. High-Frequency Traders Get A New Name. Forbes.
  2. US lobby group formed on high-frequency trade. Reuters.
  3. Recommendations for Risk Controls for Trading Firms. FIA Principal Traders Group.