The U.S. Commodity Futures Trading Commission (CFTC) is seeking comment on whether to require registration for automated trading firms, taking a first step in potential restrictions on high-speed and algorithmic derivatives trading.
CFTC members voted unanimously to issue a concept release that requests input on more than 100 questions, including on whether to expand testing and supervision of high-speed trading strategies. The release, a step prior to a formal proposal by the top U.S. derivatives regulator, also considers ways to limit the maximum number of trading orders a firm can place in a given amount of time.
“Traditional risk controls and system safeguards, many of which were developed according to human speed and floor-based trading, must be evaluated in light of new market realities,” CFTC Chairman Gary Gensler said in a statement.
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