Regulatory Alerts2020-07-15 | 2020-14381Electronic Trading Risk Principles
The Commodity Futures Trading Commission proposes amendments to require designated contract markets to implement risk controls preventing, detecting, and mitigating market disruptions and system anomalies associated with electronic trading. These three principles mandate that exchanges establish rules for market participants, enforce pre-trade risk controls on all electronic orders, and promptly notify the Commission of significant platform disruptions. The proposal supplements existing regulations by providing clarity on obligations to address specific electronic trading risks while allowing DCMs flexibility in designing reasonably tailored controls.
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