Regulation of over the counter markets poses one type of challenge to the CTA community, but there are others to consider too.
Those involved in HFT may be replicating the type of role a market-maker fills, but do so without the same commitment, he says. "The wise thing to do would be to force those putting in a certain number of orders per day to register as a market maker, to be exempt from tax.
The worse enemy of CTA is public intervention. "We make money out of market psychology: when the market has the idea, it will go higher or lower. It is self-sustaining. But governments and central banks have the ability to change that psychology overnight."
Brument points to the Swiss National Bank's intervention in currency markets in mid-2011 as an example of such action, which he says is "more damaging than any catastrophe or geopolitical change, because it will always go against the trend".
He says this sort of intervention has become far more common in the past four years than in the past 25, which he links to the fact that 2009 and 2011 were difficult years for CTA strategies, compared to the average 8% to 9% return seen annually in the past quarter of a century.
Stockholm-based RPM Risk & Portfolio Management, with about $5bn under management and advice, has been active in CTA strategies since the early 1990s through products such as European Sicav Alliance and, more recently, RPM Directional, a Ucits-compliant multi strategy fund.
Mikael Stenbom, RPM chief executive and partner, takes a similar line on the issue of regulatory challenges. "Systematic managers are steered by algorithms that typically have trading horizons stretching from days to many months. This has nothing to do with HFT," he says.
As to the risk that CTAs could be caught up in the HFT regulation drive, Stenbom says: "I don't think that will happen. In some cases, there have been limits to CTAs, such as short bans in France.
"But we were not able to measure any impact, probably because when such things come into effect as a manager you are already short French equities."
"But I don't think there will be limits, because the gist of the regulation seems to be to rein in unregulated trading, off-balance sheet OTC trading, and push it into recognised markets, and clear it through clearing houses. So, I'm not that concerned."