Senator Ted Kaufman Is Meeting Today About How HFT Played Into What Happened Yesterday

Delaware Senator Ted Kaufman

UPDATE: Here’s what happened in the meeting.

We were supposed to talk with Senator Ted Kaufman today to get his take on how high frequency trading (HFT) negatively affected the markets yesterday and how it can be prevented in the future.

Then we got a call saying he’ll actually be really busy today.

He had just planned a meeting about high frequency trading and how it played into what happened yesterday.

His press agent couldn’t tell us anymore (she said she’d email us as soon as she could) but said the meeting has a lot to do with his current crusade to create regulations that will help authorities understand and monitor HFT.

So far, he’s already been doing a lot to help. A couple of months ago, Kaufman urged the SEC to “tag” traders over a certain volume threshold and collect the data.

The SEC later unanimously approved his proposal, and instituted a rule requiring high-frequency traders to reveal their identities and disclose their trades. So a better understanding of what happened yesterday is already on its way.

We’re eager to see what happens next.

Maybe in the meeting someone will propose a new regulation that the traders will want to fight him on. So far they’ve been in support. BTIG’s Brett Mock, who used to be President of the San Francisco Security Traders Association, told us he was in support of the “tagging” regulation (ID’ing every trade) and didn’t think most traders would have a problem with it either.

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