FIA Highlights Best Practices to Address Automated Trading Risk

In a new report, the Futures Industry Association ("FIA") highlighted best practices for managing risks associated with automated trading.

In the report, FIA addressed the evolution of trading technologies and the corresponding enhancements in risk management practices developed through collaboration among market participants, exchanges and regulators over the past decade.

The report described controls and safeguards across various stages of trading, including pre-trade, volatility controls, post-trade analysis and testing. FIA also noted how innovation has helped to ensure responsible use and risk management.