CFTC Reopens Comment Period for Concept Release Regarding Risk Controls and System Safeguards for Automated Trading Environments

The CFTC announced that it will reopen the comment period for its Concept Release on Risk Controls and System Safeguards for Automated Trading Environments. The comment period is extended until February 14, 2014.

The Concept Release was originally published in the Federal Register on September 12, 2013, with a comment period that ended on December 11, 2013. The Release provided an overview of the automated trading environment, including its principal actors, potential risks and responsive measures taken to date by the CFTC or industry participants. It also discussed the following:

• pre-trade risk controls;
• post-trade reports and other such measures;
• system safeguards related to the design, testing and supervision of automated trading systems ("ATSs"); and
• additional protections designed to promote safe and orderly markets.

Click hereto view comments received to date.

See: Extension of Comment Period; Press Release.Related news: CFTC Publishes Concept Release on Risk Controls and System Safeguards for Automated Trading Environments (Fed. Reg.) (September 13, 2013); CFTC Technology Advisory Committee Meeting (with Delta Strategy Group Summary) (with Lofchie Comment) (September 13, 2013); MFA Submits Letter to the CFTC Offering Recommendations to Enhance Risk Controls and System Safeguards for the Derivatives Market (December 12, 2013); FIA Responds to CFTC Regarding Concept Release on Risk Controls and System Safeguards for Automated Trading (with Discussion by Gary DeWaal, President of Gary DeWaal and Associates) (December 12, 2013).