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John M. Damgard From Precy Dumlao, Opalesque Asia:

The activity, the term "high frequency trading" is in the process of being clarified, and likely will end up being more regulated.

The Washington, D.C.-based Futures Industry Association’s Principal Traders Group ("FIA PTG"), a division of the Futures Industry Association composed of 36 firms that trade their own capital in the exchange-traded markets, proposed a definition for what constitutes "high frequency trading" (HFT).

This was in response to a letter from the U.S. Commodity Futures Trading Commission (CFTC) last month, which asked for feedback on the matter, as the Commission "needs to collect reliable data so it can define their trading activity before imposing regulations."

Acknowledging that it is "quite difficult to devise any meaningful definition for HFT that is not, in significant part, arbitrary," the Group suggested "a slightly different approach that would be more likely to provide the CFTC with information to further its regulatory objectives." It proposed that the CFTC define a new term, "Direct ATS Participant," characterized by use of an ATS directly connected to an exchange.

In a letter to the CFTC, FIA’s President John M. Damgard said, "By defining the set of market......................

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