FIA Japan Principal Trading Group

In the US (FIA Principal Traders Group) and Europe (FIA European Principal Traders Association), principal traders/electronic marketmakers have successfully established industry groups facilitating and advocating common industry positions towards legislators,
regulators, exchanges, media and the public opinion.

With increased regulatory attention to algorithmic and high frequency trading (‘HFT’) by regulators and exchanges, FIA Japan Principal Trading Group‘JPTG’) has been set up with the main objective of educating key stakeholders in Japan about HFT,understand concerns and address the same.

JPTG is a group of firms that trade their own capital in equities, futures & options and other asset classes in Japan. JPTG firms engage in manual, automated and hybrid methods of trading and are active in a wide variety of asset classes such as
equities, fixed income, foreign exchange and commodities. They serve as a critical source of liquidity in Japan, allowing those who use the
markets, including individual investors, to manage their risks and invest effectively.

JPTG aims to:

  • Provide a forum to identify and discuss issues confronting the JPTG
  • Define common positions on public policy issues in Japan and advance the group’s collective interests
  • Improve regulators’ understanding of the constructive role played by proprietary trading firms/HFTs in exchange-traded equities and derivatives markets in Japan
  • Promote a pro-active role in discussions with regulators and exchanges on algorithmic trading and HFT in Japan
  • Promote cost-effective & transparent access to Japanese markets

JPTG believes:

  • Integrity - All market participants should operate with integrity and communicate with regulators in an open and honest way
  • Regulation - A well regulated market provides stability and creates efficiencies. For this reason, market participants and trading platforms should be appropriately regulated
  • Transparency - Markets should strive for real transparency for investors and market participants
  • Stability - Stable, reliable and well-functioning markets increase security & safety and provide the foundations that encourage investor confidence
  • Equal access - Access to markets should be open to all in a nondiscriminatory way
  • Equality of information - All market participants should have access to the same trading information in order to provide a level playing field
  • Risk Management - Having risk controls in place to ensure orderly, safe and secure markets
  • Competition - Fostering competition between market participants, trading platforms, clearing platforms and co-location facilities to encourage innovation and promoting market efficiencies

Prop firms interested in participating in JPTG initiative are encouraged to contact the FIAJ Office for details.

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