The CFTC approved a new functionality proposed by ICE Futures U.S., Inc. called "Passive Order Protection," which is designed to reduce the impact of latency advantages among higher-speed traders by implementing an asymmetric delay.
The SEC and the New York Attorney General’s office penalized a broker-dealer for a combined amount of $37 million for misleading clients about the performance of an order router that primarily routes equity orders to dark pools. The firm paid an additional $3.5 million to FINRA in a related settlement.
Energy Metro Desk Editor John Sodergreen described the emerging debate over the CFTC's proposed Regulation Automated Trading, particularly where it concerns proposed access to source code without a subpoena.
Participants at a CFTC roundtable debated numerous elements of proposed Regulation Automated Trading. Commissioners clashed on the scope of government demands for information and the urgency to complete and implement the regulation.
The U.S. Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance and Investment conducted a hearing to discuss regulatory efforts to strengthen the U.S. equity market structure.
Three professors analyzed granular data to explore the causes of the 2010 "Flash Crash." They concluded that the crash was caused by "prevailing market conditions combined with the introduction of a large equity sell order implemented in a particularly dislocating manner."
The National Cattlemen's Beef Association urged the Chicago Mercantile Exchange Group to consider recommendations to reduce volatility in the market caused primarily by high frequency trading. The recommendations are intended to provide Association members with "the confidence to continue utilizing CME Group livestock futures contracts as a risk management tool."