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.
FIA and the FIA Principal Traders Group (FIA) have submitted a detailed letter in reposnse to a US Commodity Futures Trading Commission (CFTC) proposed rule making that urges the Commission to retain the current $8 billion de minimis threshold for swap dealer registration.
The associations also suggest the CFTC modifies the calculation methodology to “better align it with the goals of a well-regulated derivatives market”.
The letter states that the FIA supports the proposed $8 billion de minimis threshold for swap dealer registration purposes, as well as excepting swaps that are exchange-traded and/or cleared from de minimis calculations, without a notional backstop or haircut.