The top U.S. derivatives regulator is poised to announce a range of potential methods for overseeing automated and high-frequency trading, according to four people with knowledge of the matter, according to a recent news article posted by Bloomberg.
According to the article, the Commodity Futures Trading Commission’s four members are within days of approving the concept release, according to the people who spoke on condition of anonymity because the document isn’t yet public. Approval of the release, a step prior to proposing new rules, would trigger a public-comment period.
The CFTC is the regulatory body that monitors trades in commodity futures, like oil, natural gas, heating oil, and other commodities. The growth of high speed trading may be impacting markets and commodity values.
The pending rules are some of the first the agency is considering as it moves beyond rules required by the 2010 Dodd-Frank Act, which seeks to reduce risk and increase transparency in the swaps market. Largely unregulated swaps helped fuel the 2008 credit crisis that led to the collapse of Lehman Brothers Holdings Inc. and a U.S. rescue of New York-based American International Group Inc.