CFTC Adopts Comprehensive Automated Trading Rules

The Commodity Futures Trading Commission (CFTC) has approved a comprehensive suite of regulatory measures aimed at tackling the risks associated with automated trading.

The Commission said in a statement that the rules, dubbed Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Automated Trading (AT), comprise of risk controls and transparency requirements to be applied on US designated contract markets.

High-frequency Trading on the Line

The scope of the new rules covers traders using algorithmic trading platforms, Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term member futures commission merchants when they act in respect to the above-mentioned group of traders, and designated contract markets, when executing algorithmic traders’ order. Algorithmic trading accounts for 70 percent of all market activity in the US.

Among the measures stipulated in Regulation AT are limiting parameters for maximum order message and maximum order size, along with reporting requirements, both for traders and clearing member futures commission merchants, regarding their risk controls. In addition, Regulation AT envisages the implementation of standards for the development, testing, and monitoring of algorithmic trading systems.

One other requirement laid down in the new regulation is the registration of some proprietary traders who are not registered with the CFTC but at the same time conduct high-frequency trades in certain key futures. These are the proprietary traders who will conduct trades via direct electronic access to designated contract markets.