CFTC Holds Roundtable To Consider Proposed Regulation AT

On June 10, 2016, Staff for the Commodity Futures Trading Commission (“CFTC”) held a public roundtable to discuss its proposed Regulation Automated Trading (“Regulation AT”).¹ The CFTC proposed Regulation AT in an attempt to reduce the risk of market disruptions caused by automated trading.  Proposed Regulation AT includes risk controls and transparency measures for futures commission merchants (“FCMs”), designated contract markets (“DCMs”), and CFTC registrants using algorithmic trading systems.  The proposed rule also includes a new registration requirement for persons engaged in proprietary algorithmic trading on a DCM through direct electronic access (“DEA”).  Panelists at the roundtable – including representatives of FCMs, DCMs, and market participants with DEA – expressed concerns about the broad and prescriptive scope of Regulation AT and advocated a more flexible, principles-based, approach.