10.12.2017

CAT and Source Data Bills Advance to House

By an overwhelming vote, 59 to 1, the House Financial Services Committee approved H.R. 3973, or the Market Data Protection Act of 2017, and moved the bill to the full House of Representatives for a vote.

Introduced by Rep. Warren Davidson (R-OH) and Rep. Brad Sherman (D-CA), the bipartisan bill amends the Securities Exchange Act of 1934 to require that the SEC, FINRA, and the operator of the Consolidated Audit Trail, in consultation with the US Securities and Exchange Commission’s Chief Economist, develop comprehensive internal risk control mechanisms to safeguard and govern the storage of market data, all market data sharing agreements, and all academic research using market data. The bill also halts market data reporting to the CAT until the operator of the CAT develops such internal risk control mechanisms.

In the same session, the committee also approved H.R. 3948, the Protection Source Code Act, by a smaller margin, 46-14.

Introduced by Rep. Sean Duffy (R-WI) and Rep. David Scott (D-GA), the bipartisan bill amends the Securities Act of 1933 to require the SEC to first issue a subpoena before compelling a person to produce or furnish to the SEC algorithmic trading source code or similar intellectual property.

(Visited 116 times, 1 visits today)

Related articles

  1. Algorithmic Trading Broadens Appea

    Automated technology brings significant benefits but can also amplify risks.

  2. Fixed Income and E-Trading Converge

    There are multiple ways to make buy-side workflows more efficient.

  3. Machines and Algorithms Create Opportunities and Risk

    New software allows for building of single, multi-legged and pairs trades.

  4. WEX Options Algo Built for Market Complexity

    Traders will have a good year against the bots.

  5. From The Markets

    Lime, CQG Partner on Algos

    Deal gives CQG customers futures trading strategies without the need to customize.