Sec. 107. Study on high-frequency trading
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/bill/113/hr/4413/rfs/section-107A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than one year after the date of the enactment of this Act, the Commodity Futures Trading Commission shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report examining the effect of the practice commonly referred to as high-frequency trading on markets under its jurisdiction. In preparing the report submitted under subsection (a), the Commission shall particularly examine each of the following areas:
The technology, personnel, or other resources the Commission may require for purposes of monitoring the effect of high-frequency trading. The role such trading plays in providing market liquidity. Whether the technology creates discrepancies in the marketplace between market participants. Whether the existing authority of the Commission with respect to such trading is sufficient to meet the Commission’s mission to— protect market participants and the public from fraud, manipulation, abusive practices, and systemic risk related to derivatives; and foster transparent, open, competitive, and financially sound markets.
Whether such trading increases market volatility, including short term market swings.