FIA urges CFTC to consider alternative trade reporting system

13 October 2010

Firms from across the futures industry are working on developing an alternative trade reporting system to that suggested by the Commodity Futures Trading Commission (CFTC).

According to the Futures Industry Association (FIA), its reporting solution will represent a “practical and cost-effective” alternative to the CFTC proposals.

The program, which has received input from all the US exchanges as well as 16 firms, is designed to be less expensive and time-consuming to implement due to its reliance upon information already available within the existing reporting system.

FIA has criticised the CFTC’s proposals claiming that the solution would require a structural overhaul as well as leading to “significant” extra costs.

John Damgard, FIA president, said: “We recognize and support the CFTC’s need to develop a more robust trade practice and market surveillance program.

“The FIA OCR working group has devoted considerable time to developing an industry solution that we hope will meet the commission’s goal, but CFTC feedback is critical to the progress of the initiative.”

Proposals unveiled by the CTFC in July to overhaul control systems would involve the creation of reporting entities to collect information and provide daily correlations to the trade register.

By Jim Ottewill

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