From the time Regulation AT was initially proposed by the
Commodity Futures Trading Commission ("CFTC") over a year
ago, the CFTC has solicited and considered numerous comment
letters, held a public roundtable, supplemented the proposed
regulation, and, on January 23, 2017, extended the comment period
for that supplemental proposal. However, although the substance of
the regulation has evolved in certain respects, its future remains
uncertain.
In November 2015, the CFTC first proposed Regulation AT, which
would regulate automated trading on U.S. designated contract
markets ("DCMs") and was primarily designed to reduce the
likelihood of market disruptions caused by automated trading. As
originally proposed, Regulation AT would impose risk control and
other requirements at three levels: (i) on certain market
participants (known as "AT Persons") using algorithmic
trading systems ("ATSs"); (ii) on clearing member futures
commission merchants ("FCMs") with respect to
