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FR
Regulatory Information
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executive
2020-07-15
article
Electronic Trading Risk Principles
Proposed Rules
D09002ee1c1028d5d
D09002ee1c1028dd3
United States
Commodity Futures Trading Commission
originator
org
United States Government Agency or Subagency
The Commodity Futures Trading Commission (``CFTC'' or ``Commission'') is proposing amendments to its regulations to address the potential risk of a designated contract market's (``DCM'') trading platform experiencing a disruption or system anomaly due to electronic trading. The proposed regulations consist of three principles applicable to DCMs concerning: The implementation of exchange rules applicable to market participants to prevent, detect, and mitigate market disruptions and system anomalies associated with electronic trading; the implementation of exchange-based pre-trade risk controls for all electronic orders; and the prompt notification of the Commission by DCMs of any significant disruptions to their electronic trading platforms. The proposed regulations are accompanied by proposed acceptable practices (``Acceptable Practices''), which provide that a DCM can comply with these principles by adopting and implementing rules and risk controls that are reasonably designed to prevent, detect, and mitigate market disruptions and system anomalies associated with electronic trading.
85 FR 42761
https://www.govinfo.gov/app/details/FR-2020-07-15/2020-14381
2020-14381
fr15jy20-16
RIN 3038-AF04
6351-01-P
https://www.govinfo.gov/app/details/FR-2020-07-15/2020-14381
https://www.govinfo.gov/content/pkg/FR-2020-07-15/html/2020-14381.htm
https://www.govinfo.gov/content/pkg/FR-2020-07-15/pdf/2020-14381.pdf
Commodity Futures
Designated Contract Markets
Reporting and Recordkeeping Requirements
22 p.
42761
42782
85 FR 42761
Code of Federal Regulations
Title 17 Part 38
17 CFR Part 38
Regulation Identification Number 3038-AF04
RIN 3038-AF04
Electronic Trading Risk Principles; Federal Register Vol. 85, Issue
PRORULE
2020-14381
COMMODITY FUTURES TRADING COMMISSION
2020-08-24
6351-01-P
2020-14381
Notice of proposed rulemaking.
The Commodity Futures Trading Commission (``CFTC'' or ``Commission'') is proposing amendments to its regulations to address the potential risk of a designated contract market's (``DCM'') trading platform experiencing a disruption or system anomaly due to electronic trading. The proposed regulations consist of three principles applicable to DCMs concerning: The implementation of exchange rules applicable to market participants to prevent, detect, and mitigate market disruptions and system anomalies associated with electronic trading; the implementation of exchange-based pre-trade risk controls for all electronic orders; and the prompt notification of the Commission by DCMs of any significant disruptions to their electronic trading platforms. The proposed regulations are accompanied by proposed acceptable practices (``Acceptable Practices''), which provide that a DCM can comply with these principles by adopting and implementing rules and risk controls that are reasonably designed to prevent, detect, and mitigate market disruptions and system anomalies associated with electronic trading.
Comments must be received on or before August 24, 2020.
Marilee Dahlman, Special Counsel, mdahlman@cftc.gov or 202-418-5264; Joseph Otchin, Special Counsel, jotchin@cftc.gov or 202-418-5623, Division of Market Oversight; Esen Onur,eonur@cftc.gov or 202-418-6146, Office of the Chief Economist; in each case at the Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581.
Commodity Futures
Designated Contract Markets
Reporting and Recordkeeping Requirements
Electronic Trading Risk Principles,
eonur@cftc.gov
jotchin@cftc.gov
mdahlman@cftc.gov
OIRAsubmission@omb.eop.gov
http://www.cftc.gov/ucm/groups/public/@otherif/documents/ifdocs/staff-findings050610.pdf
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539879795
https://comments.cftc.gov
https://comments.cftc.gov/PublicComments/CommentList.aspx?id=1762
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https://www.bls.gov/oes/current/naics4_523000.htm
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https://www.cftc.gov/About/CFTCCommittees/TechnologyAdvisory/tac_meetings.html
https://www.cftc.gov/MarketReports/StaffReports/index.htm
https://www.cftc.gov/PressRoom/Events/opaeventtac100319
https://www.cftc.gov/PressRoom/PressReleases/8183-20
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https://www.fia.org/articles/record-year-derivatives
https://www.fia.org/sites/default/files/2020-02/Guidance%20for%20Firms%20and%20Third%20Party%20Algorithmic%20Trading%20Providers.pdf
https://www.hblr.org/volume-10-2019-2020/
https://www.iosco.org/library/pubdocs/pdf/IOSCOPD607.pdf
https://www.nfa.futures.org/rulebook/rules.aspx?RuleID=9046&Section=9
https://www.reuters.com/article/cme-violations-automated/cme-group-fines-three-firms-for-automated-trading-violations-idUSL1N0U31HF20141219
https://www.reuters.com/article/us-cme-infinium-fine/high-frequency-firm-fined-for-trading-malfunctions-idUSTRE7AO1Q820111125
https://www.wsj.com/articles/futures-exchange-reins-in-runaway-trading-algorithms-11572377375
RegInfo.gov
www.cmegroup.com/globex/trade-on-cme-globex/risk-management-tools.html
Federal Register
Vol. 85, no. 136
Office of the Federal Register, National Archives and Records Administration
2020-07-15
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440 p.
Table of Contents:
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AE 2.106:
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https://www.govinfo.gov/app/details/FR-2020-07-15
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0042-1219
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https://www.govinfo.gov/app/details/FR-2020-07-15
https://www.govinfo.gov/content/pkg/FR-2020-07-15/pdf/FR-2020-07-15.pdf
https://www.govinfo.gov/content/pkg/FR-2020-07-15/xml/FR-2020-07-15.xml
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