WFE Offers Support to SEC Chair White on High Frequency Trading

Friday, 20 June 2014

Dear Chair White,

The World Federation of Exchanges commends your determination to ensure investor confidence in US markets remains strong, your push to guarantee the benefits of technology is passed on to all active in them and your data-driven approach to evaluating market structure.

WFE directors, at a board meeting in Zurich on June 20, are resolved to offer you the resources of our members globally, our deep pool of statistics & data from more than 60 exchanges and the breadth of technical expertise the Federation assembles from the world’s market operators. Our members’ interests are aligned with regulators in ensuring the elevated safety of markets, especially in a fragmented environment, and we are continuing work with both exchanges and market participants to share information, develop appropriate principles and guidelines on bourse oversight and risk mitigation in ways that preserve the benefits of HFT and enhanced safeguards for markets.

We also back your view of markets especially your comments thus:

“Our markets are not broken and they are not static,’’ Chairwoman White told the NY Economics Club on June 20, adding to June 5 remarks on enhancing equity market structure. ‘’In that sense, our work on market structure is never finished – the speed with which technology and markets change makes that impossible – instead, we must always be focused on what in our market structure can be improved for the benefit of investors and companies.”

Today’s exchange markets are unquestionably faster, more transparent and more efficient than the market structures that preceded them. Exchanges have adapted to the speed and automation of today’s markets by deploying sophisticated risk mitigation and surveillance technology, and are continuing to innovate in these areas to further enhance the safety, stability and integrity of the markets. We, the operators of the world’s markets, are committed to ensuring they are transparent, orderly and fair as we strive to help individuals save for retirement, empower families and firms to fund their development and companies create jobs and offset risk.

The World Federation of Exchanges is the trade association for the operators of regulated exchanges. With more than 60 members from around the globe, the WFE develops and promotes standards in markets, supporting reform in the regulation of OTC markets, fostering international cooperation & coordination among regulators and maintaining a database of exchange statistics.

Board of Directors

World Federation of Exchanges Ltd

Report Date: 
Fri, 06/20/2014