Regulatory Alerts2021-01-11 | 2020-27622Electronic Trading Risk Principles
The Commodity Futures Trading Commission adopted final rules amending Part 38 regulations to address market disruption risks associated with electronic trading on designated contract markets. The rules establish three principles requiring DCMs to implement rules preventing disruptions, enforce pre-trade risk controls for all electronic orders, and promptly notify the Commission of significant market anomalies. These principles-based requirements allow DCMs flexibility to adopt reasonable measures tailored to their specific trading platforms while ensuring market integrity.
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