ValueWalk: Why Did Regulator Have Computer Trading Code On Personal PC?

Mark Melin writes that a 2016 SEC Office of Inspector General (OIG) report contains a little-noticed reprimand of an SEC quantitative analyst charged with improperly requesting and downloading confidential computer code to his personal computer.  This as measures in the CFTC’s pending Reg AT call for regulators to have subpoena-less access to source code used by professional traders.

“All it takes is one bad apple inside an organization for there to be a breach of private intellectual property,” said Bill Harts CEO of the Modern Markets Initiative, a group advocating for professional algorithmic traders who oppose the government’s ability to inspect confidential computer trading code on demand without a subpoena. “That’s why the government has to use an abundance of caution, especially when it comes to one of a firm’s most valuable assets, its source code.”

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