Trade Associations Request Extension of Comment Period on Reg. AT Proposal
Commentary by Steven Lofchie
Several financial industry trade associations filed a joint letter with the CFTC requesting a six-month extension of the comment period for the supplemental proposal to Regulation Automated Trading ("Regulation AT"). Currently, comments on the proposal are due on or before January 24, 2017.
Recognizing the uncertainty of the transition process between administrations, the trade associations urged the CFTC to extend the comment period in order to allow the matter to be reviewed and resolved under the new administration in 2017.
The letter was signed by the FIA, the FIA Principal Traders Group, MFA, ISDA, SIFMA, SIFMA AMG, the U.S. Chamber of Commerce, the Center for Capital Markets Competitiveness, and the Commodity Markets Council.
Commentary
CFTC Commissioner J. Christopher Giancarlo opposes the current draft of Regulation AT.(See CFTC Roundtable Participants Debate Regulation AT Proposal (with Delta Strategy Group Summary).) Given his strong position on the matter, and the universal opposition of buyers and sellers to it, Regulation AT, as proposed, is effectively dead. Even if the proposal was taken up by the current CFTC and forced through by a two-to-one vote, the regulation could be overturned easily by the new Congress pursuant to the Congressional Review Act.