Bloomberg: Algorithmic Traders Might Keep Trade Code Secret as CFTC Mulls Tweaks

Benjamin Bain reports Commodity Futures Trading Commission Chairman Timothy Massad said his commission is considering modifying its push for access to computer code after high-speed traders said the effort would be unprecedented and could put the industry’s secret trading formulas at risk. “We can think of no other circumstance where market participants have been required to reveal, to a regulator, their thoughts, words or actions regarding future automated or manual trading intent,” the Modern Markets Initiative wrote in a June letter to the CFTC. Forcing firms to provide their code without a subpoena “constitutes an unlawful seizure of protected intellectual property,” the industry trade group said in its letter.