CFTC Supplements Proposed Automated Trading Rulemaking: CFTC Supplements its Proposed Regulation AT Rulemaking to Amend the Scope of Pre-Trade Risk Control, Registration and Source Code Retention Requirements, Among Other Revisions

Sullivan & Cromwell LLP - November 7, 2016
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On November 4, 2016, the Commodity Futures Trading Commission (the “CFTC” or “Commission”) voted 2 to 1 (Commissioner Christopher Giancarlo dissenting) to issue a supplemental notice of proposed rulemaking (the “Supplement”) with respect to its previously issued proposed rules that would implement a framework of registration, compliance, recordkeeping and reporting rules for market participants engaging in algorithmic or automated trading activity (such persons, as further described below, “AT Persons”) (the “Original Proposal”).  The proposed rules are referred to as Regulation AT (or “Reg AT”).