Staff at the Commodity Futures Trading Commission (CFTC) clashed over the supplemental proposal to the Automated Trading Regulation (RegAT), even though the proposals were ultimately approved today by the Commission.
In a meeting in Washington today CFTC Commissioner, Christian Giancarlo, who voted against the proposal, disagreed with Chairman Timothy Massad on a number of issues relating to RegAT.
The main point of contention was the access that the proposed rules would give the CFTC to automated trading firms’ source code, which has drawn some strong criticism from market participants and industry bodies throughout this year.
If I were a cynic I would raise a quizzical eyebrow at the timing of the CFTC’s announcement on Friday that it has proposed “supplements” to some of the detail around RegAT. This rule has raised significant controversy over what seemed to be a proposal to have source code stored with the CFTC, but, according to CFTC, apparently it was all a misunderstanding! A cynic would also ask why something that is "misunderstood" needs rewriting of course, but I'm sure we're above that...