The amendments update recordkeeping requirements for all books and records that must be kept in accordance with CEA and CFTC rules. The amendments eliminate outdated provisions of the rule in light of evolving changes in the technology for storing records. The amendments rescind the requirements that paper records must be kept in their original form, and that electronic records must retain the format in which they were created. Further, the amendment removes a requirement that a person who uses only electronic storage media to preserve required records must enter into an arrangement with a third-party technical consultant who can furnish the CFTC with the information promptly upon request. The CFTC stated that the proposed amendments will "modernize and make technology-neutral the form and manner in which regulatory records must be kept."
In a related statement on the amendments, CFTC Chair Timothy Massad observed that modern times demand modernized requirements:
"In this age where terabytes of storage easily fit in one's pocket, our rules should not refer to microfiche or require paper records."
The CFTC approved a supplemental proposal to Regulation Automated Trading. The revised proposal lowers the threshold for registration for algorithmic trading firms and allows the CFTC to obtain access to their source code.
"The Risk Desk" editor John R. Sodergreen described the debate between CFTC Chair Timothy Massad and Commissioner Chris Giancarlo over an amendment to proposed Regulation Automated Trading that would allow the CFTC access to an algorithmic firm's trading source code without first issuing a subpoena.
CFTC Chair Timothy Massad outlined CFTC developments concerning (i) the strength and stability of clearinghouses, (ii) technological changes and innovations in the marketplace, and (iii) remaining rulemaking required by the Dodd-Frank Act.
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