CFTC Proposes Electronic Trading Principles And Withdraws Proposed Reg AT

The CFTC unanimously approved a proposal to amend Part 38 of the CFTC Rules to include electronic trading "Risk Principles," and, by a 3-2 vote, withdrew its proposed Regulation Automated Trading.

Electronic Trading Risk Principles

The CFTC proposed amendments to Part 38 of the CFTC Rules. The amendments consist of three applicable "risk principles" for designated contract markets:

• the implementation of exchange rules intended to identify, alleviate and prevent market disruptions and electronic trading systems anomalies;
• the establishment of "exchange-based pre-trade risk controls" for all electronic orders; and
• prompt notice to the CFTC by DCMs of "significant disruptions" to their electronic trading platforms.