I'm pleased we are moving this concept release forward, but given this environment it has taken way too long. If we continue at this pace,
At the same time, there is one thing that can be done now. In fact, I suggested this policy shift be included in the concept release, but since it is a larger issue than just a technology-related matter, it was decided to omit it. That's fine, because my suggestion is really an action for the
As long as we have a puny penalty regime at the CFTC, we are going to see traders risk getting caught because the potential profits are so great. We can only impose a civil monetary penalty (CMP) of
This Agency is hampered by staffing needs due to a lack of funding. We have hundreds of cases being investigated right now. The least
I look forward to receiving comments, and hope that we let no moss grow on this matter.
Appendix 4--Statement of Concurrence by Commissioner
During my time at the
The Concept Release asks over a hundred questions, which is appropriate given the importance of hearing from all sectors of the industry and benefiting from their knowledge and views of automated trading. I would like to highlight a few questions that I believe it would be particularly constructive to receive feedback from the public on. The first is to establish what current protections are in the market today and the extent to which the technology is deployed, as well as its effectiveness. The second is an overarching question: Whether there is a need for regulatory action with regard to any of the measures currently in the market. In other words, should the Commission federalize any current industry practices/standards? Third, it would be helpful to receive public feedback on the definitions for high-frequency trading and automated trading systems that the TAC, after extensive effort by its Subcommittee on Automated and High Frequency Trading, has proposed. Finally, it would be beneficial to receive feedback on the possibility of a registration requirement for firms operating automated trading systems and not otherwise registered with the Commission. The Concept Release cites the definition of "floor broker" as the potential basis for such a requirement; I am interested to get public input on whether this, or any other provision in the Commission's statute or regulations, can serve as a valid foundation for registration.
The Concept Release is far from perfect. For example, it could have provided a more thorough and clear cataloguing of existing industry practices and recommendations; a recent TAC reference document is more clear and concise in compiling existing standards and recommendations in the market today. /124/ Nevertheless, I support today's issuance of the Concept Release in order to receive input from market participants on all of the issues contained herein. I look forward to reviewing the comments submitted in response to the Concept Release.
FOOTNOTE 124 This document is available at http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/tac103012_reference.pdf. END FOOTNOTE
[FR Doc. 2013-22185 Filed 9-10-13;
BILLING CODE 6351-01-P
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