Strategies to Deal with the CFTC's Proposed New Regulations For Algorithmic Trading
In November 2015, the Commodity Futures Trading Commission (CFTC) issued proposed rules that set forth registration, reporting, recordkeeping and other compliance requirements of market participants involved in algorithmic trading. The proposed rules, known as Regulation Automated Trading or Regulation AT would require a series of risk controls, safeguards and transparency measures designed to enhance the U.S. regulatory regime for automated trading in the markets over which the CFTC has jurisdiction. The rules will impose compliance, reporting and registration requirements on proprietary firms, designated contract markets (DCM), clearing member futures commission merchants (FCM) and other CFTC registrants using algorithmic trading systems. The proposed rules are intended to reduce the likelihood that algorithmic trading will result in violations of the Commodity Exchange Act (CEA) or CFTC regulations.
In order to address the risks of Algorithmic Trading, potential market disruptions arising from system malfunctions, other errors, or intentional disruptive conduct, it is highly necessary to implement written policies and procedures, establish a system for monitoring algorithmic trading in real time and ensure compliance with the CEA and the Commission regulations.
In this LIVE Webcast, a panel of thought leaders and professionals assembled by The Knowledge Group will provide the audience with an in-depth discussion of the fundamentals as well as recent developments regarding the CFTC’s Proposed New Regulations for Algorithmic Trading. Speakers will also offer best practices in complying with the new reporting and registration requirements.
Key topics include:
- Regulation Automated Trading (Regulation AT)
- Risk and Compliance Controls
- New Compliance, Reporting and Registration Requirements
- Potential Market Disruptions
- Designated Contract Market (DCM)
- Source Code Audit Trail and Inspection
- Market Structure and Regulatory Issues
- System Safeguards for Automated Trading
- Direct Electronic Access (DEA)
- DCM Requirements
Proskauer Rose LLP
- Straightforward discussion of what proposed regulation does: affecting market participants, traders, exchanges
- Very recent roundtable/ CFTC – potential changes to the rules – 5 areas in particular and further comment.
- Special case of “spoofing” – a hot topic for CFTC regulators, which panel would define.
Warshaw Burstein, LLP
- Registration requirements for Algorithmic Traders
- Risk controls
- Disclosing source codes
- Compliance system implementation
Who Should Attend:
- Floor Brokers
- Swap Dealers
- Swap Participants
- Commodity Pool Operators
- Commodity Trading Advisors
- Introducing Brokers
- Propriety Traders
- Automated Trading Firms
Harry Frischer is a partner in Proskauer’s Litigation Department. He has more than 35 years of experience in a wide variety of complex litigations, arbitrations, regulatory investigations and enforcement proceedings and related matters. Harry has considerable experience involving the financial services industry, where he has represented financial institutions, broker-dealers, hedge funds, private investment funds, investment managers, traders, service providers and others. Harry has extensive experience involving complex securities, structured securities, derivatives, swaps, and similar instruments. He has also represented financial institutions in litigation and regulatory matters involving algorithmic and high frequency trading, as well as other matters involving the trading of financial instruments in a variety of contexts. Harry has tried cases in the federal and state courts, conducted arbitrations before FINRA, the American Arbitration Association, and other arbitration forums. He has argued appeals in the United States Circuit Court of Appeals and state appellate courts. He regularly represents executives who are targets and witnesses in regulatory investigations and enforcements proceedings conducted by the SEC, FINRA, CFTC, DOL, and other federal and state regulators.
Harry Frischer is a partner in Proskauer’s Litigation Department. He has more than 35 years of experience in a wide …
Ms. Okoshi is a seasoned corporate, transactional and regulatory counsel who focuses her practice on investment management, finance and international transactions. She has broad experience in corporate transactions and advice, joint ventures, securities offerings, corporate finance, derivatives and the offering and regulation of investment managers and products. She represents investment advisers and commodity trading advisors in connection with the organization, offering and management of funds, managed accounts and commodity pools and advises them on regulatory matters, transactions, product structuring and offerings, trading agreements and derivatives. She has significant experience in the organization and representation of on-shore and off-shore hedge funds and managed futures funds, formation of managed account platforms and private equity funds, and expertly guides investment advisers and commodity trading advisors through securities and futures regulatory requirements and compliance. Ms. Okoshi graduated from the University of Pennsylvania with a B.A. and M.A. and received her law degree from Stanford Law School. She is fluent in English, Japanese and Mandarin Chinese.
Ms. Okoshi is a seasoned corporate, transactional and regulatory counsel who focuses her practice on investment management, finance and international …
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About Proskauer Rose LLP
Proskauer is a leading international law firm focused on creating value. Our roots go back to 1875, when we were founded in New York City. With 700+ lawyers active in virtually every major market worldwide, we are recognized not only for our legal excellence, but also our dedication to client service. Our clients include many of the world’s top companies, financial institutions, investment funds, not-for-profit institutions, governmental entities and other organizations across industries and borders. We also represent individuals in transactions and other matters. In addition to New York, we have offices in Beijing, Boston, Chicago, Hong Kong, London, Los Angeles, Paris, São Paulo and Washington, D.C., as well as Boca Raton, Newark and New Orleans.
About Warshaw Burstein, LLP
With roots dating back to 1927, Warshaw Burstein, LLP is a full-service law firm with offices in New York City that has distinguished itself through superior and cost-effective legal services, and personalized client care and attention.
Warshaw Burstein, LLP is a mid-sized law firm, concentrating in the following practice areas: banking and finance, construction, corporate and securities, creditors’ defense litigation and compliance, entertainment and media, exempt organizations, financial services, intellectual property, litigation, matrimonial and family law, real estate, tax, and trusts and estates. It has comprehensive experience representing a wide range of international, national and local businesses of all sizes, as well as governmental authorities and many prominent families and individuals, in an extensive array of litigation and transactional matters.