CFTC amendments to CFTC Rules Part 38 ("Designated Contract markets") to include electronic trading risk principles ("Risk Principles") were published in the Federal Register. The amendments went into effect on January 11, 2021, and designated contract markets ("DCMs") must be in compliance with the amendments by July 12, 2021.

As previously covered, the amendments consist of three applicable Risk Principles for DCMs:

  • the implementation of exchange rules intended to identify, alleviate and prevent market disruptions and electronic trading system anomalies;
  • the establishment of "exchange-based pre-trade risk controls" for all electronic orders; and
  • prompt notice to the CFTC by DCMs of "significant disruptions" to their electronic trading platforms.

Primary Sources

  1. Federal Register: Electronic Trading Risk Principles

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