ValueWalk: CFTC One Step Closer To Reg AT, Requiring Access to Algos

Mark Melin reports the CFTC proposed rulemaking changes to issue a “special call” notice to registered participant as opposed to a legal subpoena, when seeking access to the source code of automated traders. CFTC Chairman Tim Massad said engaging in market manipulation “should not be able to hide behind machines.” Modern Markets Initiative CEO Bill Harts said, “The only thing hidden is the CFTCs reason for not using a procedure that has served it well.” “We live in the United States of America,” Harts said. “We have due process rights guaranteed by the Constitution.” Harts wants to specifically understand why subpoena power is not enough for investigators. “We are disappointed the CFTC voted to propose a new process that ignores due process and private property rights of US citizens, while not stating if or why the current subpoena process doesn’t work,” Harts said. “Why is there a necessity to bypass these important Constitutional protections and put US businesses’ intellectual property at risk?”