FIA Says CFTC Automated Trading Proposal Should Protect Source Code

The Futures Industry Association ("FIA") Principal Traders Group ("PTG") urged the CFTC to "protect innovation in markets" by requiring limited access to algorithmic source code in its Regulation Automated Trading proposal.

FIA PTG expressed concern that the rule proposal, as written, could allow any CFTC or Department of Justice representative to request and receive access to a firm's source code "without a subpoena or any formal process of law." They argued that unrestricted access constitutes "unacceptable government overreach."

FIA PTG reiterated its previous recommendation that the CFTC focus on risk controls in the proposal and "set aside the policies and procedures section for now."