CFTC Electronic Trading Rules: CFTC Releases New Proposed Rule on Electronic Trading Risk Principles and Withdraws Regulation AT Proposal

Sullivan & Cromwell LLP - June 26, 2020
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The CFTC voted to publish for public comment a new proposed rule addressing electronic trading risk principles.  The proposed rule consists of three principles applicable to exchanges concerning: (i) the implementation of exchange rules applicable to market participants to prevent, detect, and mitigate market disruptions and system anomalies associated with electronic trading; (ii) the implementation of exchange-based pre-trade risk controls for all electronic orders; and (iii) the prompt notification of the Commission by DCMs of any significant disruptions to their electronic trading platforms.  The CFTC also announced its decision to formally withdraw its prior proposals on regulation of automated trading.