FIA European Principal Traders Association
|FIA European Principal Traders Association
|Industry association for firms that trade their own capital
|Alistair McGrath, Piebe Teeboom
FIA European Principal Traders Association is a forum established for firms that trade their own capital to identify and discuss issues confronting their trading community. The association was created in June of 2011 by the Futures Industry Association (FIA).
The FIA EPTA was set up to operate under independent governance in Europe with a similar profile to the FIA Principal Traders Group that was established by the FIA in 2010 in the United States.
The group was expected to work to define common positions on public policy issues, improve the public’s understanding of the constructive role played by proprietary trading groups in the exchange-traded markets and promote cost-effective, equal and transparent access to European markets.
Products and Services
The mission of the FIA EPTA is to support transparent, robust and safe markets with a level playing field for all market participants. Through an organized approach, the FIA EPTA will assist member firms in developing their understanding of current and future market policies.
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.
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 resiliency. We 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.
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.”
Membership in the FIA EPTA is limited to firms that primarily trade for their own account rather than on behalf of customers. A full list of members can be found here.
- All Options International B.V.
- Citadel Securities Europe Ltd
- DRW Investments (UK) Ltd
- DV Trading, LLC
- Flow Traders B.V.
- Geneva Ireland Financial Trading Ltd
- Hudson River Trading Europe Ltd
- IMC Trading B.V.
- Jane Street Financial Ltd
- Mako Global Derivatives Partnership LLP
- Maven Europe Ltd
- Optiver VOF
- OSTC Limited
- Panthera Investment GmbH
- RSJ Securities a.s.
- SSW Trading GmbH
- Susquehanna International Group Limited
- Tower Research Capital Europe Limited
- Tibra Trading Europe Limited
- Two Sigma Securities Ltd
- Tyler Capital Ltd.
- Virtu Financial LLC
- Webb Traders B.V.
- XR Trading EU B.V.
- Diederik Dorst, All Options
- Savid Furlong, Virtu Financial
- Niels Lemmers, Flow Traders – Vice Chairman
- Emma Lokko, SIG
- Alistair McGrath, Tower Research Capital Europe - Chairman
- Jackie Mesa, FIA
- Ed Monrad, Optiver
- Virginie Saade, Citadel Securities
- Piebe Teeboom, FIA EPTA – non-voting member