US Regulators Eye Algorithmic Trading

Justin Slaughter, a partner at Mercury Strategies, warns that US regulators are examining if they need to take further action around algorithmic trading.

Talking about how the Commodity Futures Trading Commission (CFTC) has not necessarily given up on “Reg AT”, which included a controversial provision that trading firms hand over potentially proprietary source code related to trading to the regulator, Slaughter highlighted broader questions about what data regulators should have access to.

“What should the government do to make sure that we have access in an emergency to critical data but not give it so much access that we’re then in danger of leaking our critical proprietary knowledge?” he says.

Slaughter adds: “I think there’s a sense, and it’s even from the chairman, that there needs to be some kind of action regarding algorithmic trading and I do think that they’ll be doing something on that this term.”

Discussing the extent to which FX is in regulators’ crosshairs following recent scandals, Slaughter says “the conversation has moved on”.

However, he did caveat that this might not be a permanent state of affairs.

“The conversation continues and politics in America can change very quickly,” he says.

The full interview can be viewed here:

Justin Slaughter, a partner at Mercury Strategies, warns that US regulators are examining if they need to take further action around algorithmic trading.  Talking about how the Commodity Futures Trading Commission (CFTC) has not necessarily given up on “Reg AT”, which included a controversial provision that trading firms hand over potentially proprietary source code related to trading to the regulator, Slaughter highlighted broader questions about what data regulators should have access to.  “What should the government do to make sure that we have access in an emergency to critical data but not give it so much access that we’re then in danger of leaking our critical proprietary knowledge?” he says.

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Galen Stops

Galen Stops