With the recent volatility in the cattle market some in the industry are calling the market dysfunctional. They’re pointing to the high frequency traders for creating a market environment that runs counter to what the futures were founded for which is to help minimize risk for producers and end users. Tim Andriesen is Managing Director of Ag Commodities with the CME Group. He says electronic trading allows them to more closely monitor all of the trades in the market.

He says have no evidence or suspicion of wrong doing by the high frequency traders or any other participants and the exchange’s role is to make sure the markets are fair and transparent.

To make sure the market is transparent new rules have been introduced by the CFTC to govern automated trading which now makes up 70-percent of the market.