Financial Times: US regulators propose powers to scrutinise algo traders’ source code

Financial Times: US regulators propose powers to scrutinise algo traders’ source code
The idea of sharing source code with government officials is emerging as the most controversial element of the CFTC’s new regulation on automated trading which attempts to catch up with the explosion in automated trading over the past 10 years. “While we think that the CFTC’s goal is perfectly reasonable, it’s inconceivable that any firm should be expected to leave its intellectual property on the doorstep of the government,” says Bill Harts, chief executive of Modern Markets Initiative, a trading industry group, whose members include Hudson River Trading and Tower Research Capital.