Opening Statement Before the Technology Advisory Committee

Commissioner Michael V. Dunn

July 14, 2010

Thank you Mister Chairman for convening the first meeting of the newly reconstituted Technology Advisory Committee.  I look forward to hearing from the experts gathered today and hope that their thoughts and insights can help to inform the Commission as we move forward into an era in our industry where technology has begun and will continue to be a dominant force in the markets we regulate.

Since I first began reading stories regarding the impact of high frequency and algorithmic trading on the markets, I was struck by how far technology has taken us in the short period of time since I joined the Commission.  When I arrived in 2004, traders were still in the pits, and there was resistance in some quarters to movement towards electronic trading.  This resistance proved futile.  In just 6 short years, the speed and sophistication of electronic trading has grown so rapidly, it is my fear that the Commission may be unable to keep pace with the market and its users.  In this brave new world, crop reports seem like antiquated tools and a math or physics degree from MIT may be a prerequisite for developing a successful trading strategy. Fortunately for us, Commissioner O’Malia has resurrected this advisory committee at a time when the talents of the members gathered today are truly needed to help the Commission make sense of a trading world that changes more swiftly than it ever has in the past.

It is my hope that the Commission will continue to develop the expertise in-house to handle the technological advances our markets face and that our staff can work with the members of this Committee to ensure market transparency and efficiency.  Thank you all for your service and I look forward to today’s presentations.

Last Updated: July 14, 2010