MFA And AIMA Urge CFTC To Drop Reg. AT

The Managed Funds Association ("MFA") and the Alternative Investment Management Association ("AIMA") urged the CFTC to abandon a re-proposed automated trading regulation ("Reg. AT").

In a joint letter to the CFTC, MFA and AIMA criticized the underlying framework of the proposed rule as "flawed and misdirected" and stated that a "fundamental revision is necessary." In particular, the letter claims that "Regulation AT creates a complex and elaborate regulatory framework, which . . . will be burdensome for both regulators and market participants." The associations explained the problem as follows: