CFTC Chairman Gary Gensler said that the CFTC may seek comment before July on ways to test and supervise automated and high-frequency trading systems, a step towards publishing proposed rules for direct market access.
Gensler told reports that the concept release document is “pretty far along.” The release would specify measures for testing, supervising, and protecting participants with direct market access to ensure market trading is compliant and orderly.
The CFTC’s technology advisory committee held a meeting on March 29 to discuss high-frequency trading. Automated trading firms drew attention from regulators after the May 2010 crash that lost $862 billion in US shares.
Read more about high-frequency trading systems.