Algorithmic Trading Regulation With An Enforcement Edge

Law360, New York (February 18, 2016, 12:05 PM EST) -- The proposed automated trading rules (Regulation AT)[1] by the U.S. Commodity Futures Trading Commission could enhance the CFTC's ability to bring enforcement actions for manipulation and disruptive trading by making algorithmic traders abide by a myriad of registration, compliance, record-keeping and reporting requirements. As proposed, Regulation AT is a game-changer for CFTC enforcement in two distinct ways: 1) it would likely limit a person's ability to take potentially manipulative or disruptive actions in the derivatives markets, and 2) it would provide regulators with valuable information on the automated trading systems (ATSs) if used to violate the Commodity Exchange Act (CEA) and regulations....

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