CFTC Told Algorithm Rules ‘Virtually Impossible’ to Enforce

It would be “virtually impossible” for the U.S. Commodity Futures Trading Commission to enforce rules governing how traders use algorithms before they complete transactions, an advisory subcommittee told the agency.

“The only way to independently enforce any sort of specific regulations on quality assurance for trading firms would be to have a virtual army of CFTC employed quality assurance professionals who have complete access to all trading firms’ intellectual property,” the CFTC Technology Advisory Committee’s pre-trade functionality unit said in a report.