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Regulating Automated Trading in Derivatives: An Overview of the CFTC’s Proposed Regulation AT  


Author:  Nikiforos Mathews.; Jonas Robison.


Source: Volume 29, Number 05, May/June 2016 , pp.31-40(10)




Journal of Taxation and Regulation of Financial Institutions

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Abstract: 

CFTC rules for derivatives trading on designated contract markets originate from an era of pit trading. Today, however, such trading increasingly involves highly automated trading and trade matching systems, and the CFTC is seeking to update its rules accordingly. Newly proposed Regulation Automated Trading would provide a series of risk controls, transparency measures, and other safeguards to enhance the regulatory regime for automated trading on U.S. designated contract markets. This article provides an overview of the proposed regulation.

Keywords: derivatives trading; Prop. Reg. AT; designated contract markets; algorithmic trading systems; risk management; recordkeeping and reporting

Affiliations:  1: Orrick, Herrington & Sutcliffe LLP; 2: Orrick, Herrington & Sutcliffe LLP.

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