TheUS regulator rejected the government's request for access to the HFT codes

05.10.2017 / 02:28

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A US proposal to allow the government to seize trading firms’ secret computer code is “dead,” a senior regulator has declared, a pronouncement that will delight the high-frequency trading industry. The CFTC oversees more than $200tn in futures and swap derivatives markets. The majority of the volume of US futures markets is now generated by automated trading systems. Mr Quintenz, a Republican, joined the CFTC in August. He previously worked as a congressional aide and managed an investment fund, Saeculum Capital Management. He is now one of three leaders of the commission after the departure last week of Sharon Bowen, a Democrat.

The CFTC first proposed an automated trading rule nearly two years ago when it was chaired by Timothy Massad, a Democrat. It would have required traders to preserve their source code in repositories that would be open to government inspection without a subpoena. Financial industry groups pushed back, arguing it put their intellectual property at risk of disclosure. Their concerns have been underscored by news that criminals hacked into the Securities and Exchange Commission, a regulatory counterpart of the CFTC. The agency amended the proposal last year to require the commission to issue a subpoena or a “special call”, a kind of government order for documents, before it could obtain source code.

Mr Quintenz’s antipathy towards the source code provision is shared by CFTC chairman Chris Giancarlo, a Republican nominated by President Donald Trump. “Commissioner Quintenz’s remarks on a source code repository shouldn’t surprise anyone. It’s an accurate commentary on the political reality of the issue,” a spokeswoman for the chairman said.

Source: FT
https://www.ft.com/content/068ce050-a922-11e7-93c5-648314d2c72c

Trader I. Ivanov

Varchev Traders

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TheUS regulator rejected the government's request for access to the HFT codes

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