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Mandatory Compliance Date: Electronic Trading Risk Principles.

The Commodity Futures Trading Commission (CFTC) issued a final rule to amend its part 38 regulations to address the potential risk of a designated contract market’s (DCM) trading platform that experience a market disruption or system anomaly due to electronic trading. The final rule set forth three principles applicable to DCMs concerning the: (1) implementation of exchange rules applicable to market participants to prevent, detect, and mitigate market disruptions and system anomalies associated with electronic trading; (2) implementation of exchange-based pre-trade risk controls for all electronic orders; and (3) prompt notification of CFTC by DCMs of any significant market disruptions on their electronic trading platforms. In addition, the final rule includes acceptable practices which provide that a 
DCM can comply with the principles by adopting and implementing rules and risk controls reasonably designed to prevent, detect, and mitigate market disruptions and system anomalies associated with electronic trading. Read more here.
 

  • July 12, 2021
  • Time: All Day
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