FIA EPTA is an association of European principal traders formed in June 2011 under the auspices of the Futures Industry Association (FIA). FIA EPTA represents more than twenty principal trading firms that, on a combined basis, are responsible for significant volumes of trading in many asset classes on European regulated markets and multilateral trading facilities (MTFs). On average and across the main trading venues in Europe, one in two transactions in futures and one in three transactions in equities very likely have an FIA EPTA member firm on one or both sides of the transaction.
FIA EPTA members engage in automated, manual and hybrid methods of trade generation and execution encompassing a wide variety of strategies.
As nearly all modern-day professional market participants, including brokers, pension funds and other asset managers, use algorithmic trading in one way or another, we expect over time automated trading in the market to grow along with the sophistication of the participants. Given this, we believe is better to establish broad principles to capture the universe of automation risk rather than using narrow prescriptive parameters based on the latest technology at the time. For example, high-frequency trading (or “HFT”) is a set of technologies used by a range of different participants in the market (including investment banks and brokers). FIA EPTA’s members use algorithmic and high frequency trading techniques to trade and provide liquidity to global markets.
In addition, FIA EPTA members trade their own capital. As such, FIA EPTA members have every incentive to implement robust risk controls to prevent disorderly trading or market abuse. Accordingly, the members support robust requirements for systems controls and are continuously working to improve approaches to risk management and to make financial markets more secure overall.
The mission of FIA EPTA is to support transparent, robust and safe markets with a level playing field for all market participants. In formulating its positions and careful considerations with regards to key regulatory proposals, the group draws on a wealth of expertise and detailed knowledge of the markets from the perspective of its experienced and sophisticated membership.