MMI Comment Letter to the CFTC Regarding Regulation Automated Trading

MMI appreciates the Commission’s work, generally, but takes special notice of the comprehensive efforts related to Regulation AT.  We believe updating Commission rules in response to the evolution from pit trading to electronic trading is not only needed, but can ensure that the Agency is at the forefront of establishing a suitable regulatory regime reflecting contemporary market circumstances. That support stated, which covers the vast majority of the Proposal, we have grave concerns with the proposed criteria, under section § 1.81(a), that AT Persons must produce for inspection “a source code repository to manage source code access, persistence, copies of all code used in the production environment, and changes to such code.” We believe this will … (place) the trade secrets and intellectual property of algorithmic trading firms at precarious, unwarranted and unnecessary risk.