Skip to content
Subscriber Only

CFTC Too Broke to Properly Police Flash Traders, Massad Says

  • Agency head tells House appropriators CFTC needs more money
  • Massad says industry booming while agency tech falls behind

The top U.S. derivatives regulator said his agency needs more money to keep up with the Flash Boys.

Derivatives trading is “changing and innovating at the speed of light,” while the agency has been underfunded and needs money for technology and expert staff, Timothy Massad, chairman of the Commodity Futures Trading Commission, said during testimony at a House budget hearing on Wednesday. The transformation of the industry was highlighted in Michael Lewis’s book “Flash Boys,” which alleged proprietary traders used hyper-fast connections between markets to pick off investors whose orders sat in dark pools that used slower price feeds.