Release: #3949-96

For Release:October 3, 1996


Washington, D.C. - The Commodity Futures Trading Commission announced today that it will hold an ``Exchange Order and Trade Automation Roundtable'' on Wednesday, October 16, 1996, from 1:00 pm until 6:00 pm, at the Chicago-Kent College of Law auditorium, 565 West Adams Street, Chicago, Illinois.

The Roundtable discussion will bring together a diverse group of market users, financial market experts, exchange officials and academics for an open, dynamic dialogue on exchange automation issues, and is intended to identify the obstacles and benefits that market users believe are of primary importance to that debate. In addition, the Roundtable will address the practicability of further automating order delivery and trade transmission systems.

The Roundtable will consist of three expert panels (an exchange technology panel, a users' panel, and a clearing panel) and a Discussant Group to question each panel after its presentation. CFTC Chairperson Brooksley Born and the Commissioners also will participate.

The Roundtable will be open to the public. For further information, contact the Commission's Office of Public Affairs at (202) 418-5080. The agenda for the Roundtable is attached: EXCHANGE ORDER AND TRADE AUTOMATION ROUNDTABLE AGENDA OCTOBER 16, 1996

I.Welcome and Opening Remarks by Roundtable Moderator, CFTC Chairperson Brooksley Born. 1:00 - 1:15 p.m.

Explanation of Roundtable Format and Introduction of Discussants.

Brief Statements from Discussants on What They Think Most Pressing Technology Concern For the Industry Is.

II.Panel One:

Exchange Technology Panel. 1:15 - 2:00 p.m.

1.Introduction of Panel One Speakers.

2.Topics for Discussion:

a.Description of Order Routing and Order Delivery Systems Currently in Use and Planned by Exchanges.

b.Recent and Planned Actions to Facilitate use of Proprietary Order-Routing and Order-Entry Systems at the Exchanges.

c.What is Working and What is Not?

d.Practicability of Accelerating Improvements to Order-Routing Process.

e.Practicability of Further Automation of Order- Routing Process.

3.Discussant Group Questions for Panel One. 2:00 - 2:45 p.m.

III. Panel Two:

User Representatives. 2:45 - 3:30 p.m.

1.Introduction of Panel Two Speakers.

2.Topics for Discussion:

a.Use of Order Routing and Trade-Transmittal Technologies.

- What Users Like/Dislike About Systems.

- What Future Development Users Want.

- What Exchange Initiatives are Necessary to Further Such Developments.

b.Advantages/Disadvantages of Proprietary as Opposed to Exchange Systems.

c.Biggest Concerns About Use of Systems.

3.Discussant Group Questions for Panel Two. 3:30 - 4:15 p.m.

IV.Coffee Break 4:15 - 4:30 p.m.

V.Panel Three:

Clearing Representatives. 4:30 - 5:00 p.m.

1.Introduction of Panel Group Three Speakers.

2.Topics for Discussion:

a.Advantages of Automated Order Routing/Order Management Systems from a Clearing Perspective.

- Real-Time Clearing.

- Risk Assessment.

- Reduction in Number of Outtrades.

b.Issues Related to Integrating Proprietary Software With Exchange Systems.

3.Discussant Group Questions for Panel Three. 5:00 - 5:30 p.m.

VI. Concluding Remarks. 5:30 - 5:45 p.m.

1.Concluding Remarks From Discussants.

2.Concluding Remarks From Chairperson Born and Commissioners.