(CFTC), the U.S. Commodity Futures Trading Commission, is seriously concerned about the state of automated trading and is serious about tightening control over how and when computer programs are used to trade interest rate futures and oil. A lot of trades are made with the help of automated trading, and many using chaotic algorithms can lead to total chaos in the market.
Last year, a project to strengthen control over automated trading was already proposed, and this seriously worried market participants, as everyone feared that the commission would simply expropriate the software. But that didn’t happen.
But the commission did not give up, and now some amendments to the rules are expected. For example, it is likely that the commission will now be able to access the software for providing a special notice, without a court order.
However, market representatives still do not understand why the CFTC was not satisfied with the procedure for gaining access to software through a court order, because the market has changed, and, according to experts and traders, it is wonderful that now 70% of the markets are automated. And yes, experts agree that if there are any problems with a company, the regulator should have access to all information on the activities of this company, but if there are no such problems …
