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High-speed traders face new CFTC scrutiny

US regulator votes to propose registration, risk controls for automated-trading firms

High-speed traders face new CFTC scrutiny
Photo: iStockPhoto

The Commodity Futures Trading Commission took its first concrete step toward boosting oversight of rapid-fire traders, advancing plans to increase controls of computerised trading after a series of market glitches.

The CFTC on November 24 voted, 3-0, to propose requiring about 100 trading firms to register with the agency and adhere to a series of risk controls aimed at ensuring their computer systems are less susceptible to disruptive breakdowns.

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