CFTC calls for Roundtable discussion of rules governing automated and algo trading

The U.S. Commodity Futures Trading Commission (CFTC) has announced that its staff will hold a public roundtable meeting, to discuss certain elements of the Commission’s notice of proposed rulemaking regarding Regulation Automated Trading (Regulation AT), including Algo trading. The Regulation AT proposed rules were initially published on December 17, 2015.

The CFTC also intends to shortly announce the reopening of the comment period for Regulation AT from June 10, 2016 through June 24, 2016 to accept comments on items in the agenda and that arise during the roundtable. The additional comment period is intended to obtain public input solely on the specific topics listed in the agenda.

The roundtable, which will be held on Friday, June 10 at 9:00 a.m. at the CFTC headquarters, will include discussion of the following topics:

  1. potential amendments to the proposed definition of “Direct Electronic Access” (DEA), consistent with and in furtherance of Regulation AT’s proposed registration regime;
  2. potential quantitative measures to establish the population of AT Persons;
  3. a potential alternative to Regulation AT’s requirements for AT Persons in proposed §§ 1.80, 1.81, and 1.83(a), which alternative could require that FCMs impose specific requirements on their customers and perform due diligence regarding customers’ compliance;
  4. AT Persons’ compliance with Regulation AT’s proposed requirements for Algorithmic Trading and Algorithmic Trading systems when using third-party algorithms or systems; and (5) source code access and retention.

More detailed information regarding agenda items to be discussed at the roundtable will be published shortly.

More on the issue is available at the CFTC website.

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