06.21.2017

CFTC Eyes Renaissance Code

The Commodity Futures Trading Commission would like to review the trading software developed by secretive hedge fund Renaissance Technologies, reports the New York Post.

The $65 billion hedge fund operated by James Simons and Robert Mercer has declined the regulators requested due to the concerns that the proprietary code might be leaked, reportedly said James Rowan, COO of the Renaissance Technology.

Such a request is one of the cornerstones of the CFTC’s Regulation AT, which the industry continues to push against.

In a comment letter submitted regarding supplemental proposed rulemaking on Regulation AT, Walt Lukken, president and CEO of the Futures Industry Association, on behalf of his organization as well as FIA Principal Traders Group vehemently opposed the CFTC’s proposal that would make Algorithmic Trading Source Code available upon request for inspection by any representative of the Commission or the Department of Justice.

“The Supplemental NPRM seeks to address our concerns, and the concerns of many other commenters, by proposing that algorithmic trading source code may be requested by means of a special call authorized by the Commission or by subpoena,” he wrote. “Although we appreciate the Commission’s efforts to offer additional safeguards against unnecessary demands for disclosure of intellectual property, the Enhanced Special Call process does not provide the protections available to market participants when a subpoena is required.”

(Visited 78 times, 1 visits today)

Related articles

  1. First Half of FX Code of Conduct Arrives

    FX traders needs more transparency and tools to deal with venue fragmentation.

  2. Congress Unlikely to Act on HFT

    Algos can now be tested for MiFID II compliance.

  3. Retail FX Trading Goes Algorithmic

    Liquidnet's latest algo searches for mini-blocks.

  4. Algorithms in Focus

    MiFID II regulations will bring new best execution requirements.

  5. TMX Aims to Keep Retail Flow in Canada

    Algorithm leverages machine learning to find inter-listed liquidity.