The move by Refinitiv to a 5ms data feed on its Spot Matching platform has grabbed Colin Lambert’s attention this week, leading him to call for an open debate in the FX industry over the length of last look windows. With both primary venues at 5ms, is it now the time for platforms to step […]
Tag: Reg AT
On Thursday, June 25, five federal regulatory agencies finalised a rule modifying the Volcker rule’s prohibition on banking entities investing in or sponsoring hedge funds or private equity funds – known as covered funds. The rule takes effect on October 1. The agencies included the Federal Reserve Board, the Commodity Futures Trading Commission (CFTC), the […]
The changing mood amongst US regulators towards the regulation of automated trading was reflected in a speech by CFTC commissioner Brian Quintenz late last week, when the newly-confirmed regulator said the controversial RegAT rule was “D-E-A-D”.
Commissioner Quintenz, who was appointed to the Commodity Futures Trading Commission in August 2017,spoke of “one of the most serious missed opportunities of the agency’s prior pending rulemakings – Regulation Automated Trading, or “Reg AT”. His sentiments are likely to be widely welcomed by market participants.
The Futures Industry Association and the FIA Principal Traders Group have yet again submitted comments to the Commodity Futures Trading Commission’s opposing what they describe as the overly prescriptive regulation of automated trading proposed by the Commission.
The comments were delivered in response to the supplemental notice of proposed rulemaking regarding Regulation AT. This is the third comment letter that the two industry bodies have submitted about this proposed regulation. FIA and FIA PTG also provided a detailed response to the Commission’s 2013 concept release on risk controls and system safeguards for automated trading environments.
The US Commodity Futures Trading Commission (CFTC) has extended the comment period for the supplemental proposal for Regulation Automated Trading (Reg AT) to May 1, 2017.
Profit & Loss has reported extensively regarding the numerous concerns articulated by market participants about the Reg AT rules.
Central to the controversy is the requirement that proprietary trading firms keep a source code repository for algorithms and make it available for inspection to any representative of the CFTC or the US Department of Justice whenever it is requested.
Following the CFTC meeting that approved the Commission’s proposed supplement to its draft rules on automated trading, the Futures Industry Association (FIA) and the FIA Principal Traders Group – which represents proprietary trading firms – expressed their “grave concerns” over the change which would grant CFTC access to proprietary source code.
The change “would permit an unacceptable level of access to proprietary source code used to operate automated trading systems”, the two bodies say in a statement, adding they will submit formal feedback during the supplement’s public comment period.