In considering the registration of specific entities using ATSs and not otherwise registered with the Commission, the "floor broker" definition in CEA 1a(23), in pertinent part, states that, in general, the term "floor trader" means any person who, in or surrounding any pit, ring, post or other place provided by a contract market for the meeting of person similarly engaged, purchases, or sells solely for such person's own account. /102/
FOOTNOTE 102 See CEA section 1a(23), as amended by section 721 of the Dodd-Frank Act; 7 U.S.C. 1a(23) (emphasis added). END FOOTNOTE
In addition to seeking input on whether it would be beneficial to require registration, the Commission also requests specific public comments in response to the following questions: /103/
FOOTNOTE 103 In
78. Should firms operating ATSs in CFTC-regulated markets, but not otherwise registered with the Commission, be required to register with the CFTC? If so, please explain.
79. Please identify the firm characteristics, trading practices, or technologies that could be used to trigger a registration requirement.
80. Should all firms deploying ATS be required to register, and should there be different standards for firms deploying HFT strategies? What are the appropriate thresholds levels below which registration would not be required?
81. Since the floor trader distinction only addresses proprietary traders, please explain whether there is any other category of market participant, such as those deploying ATS or HFT strategies and trading on behalf of clients (aside from market participants already subject to Commission jurisdiction, such as Introducing Brokers and FCMs) that the Commission should consider with respect to potential registration requirements.
82. Should software firms providing algorithms be required to register, and under what authority? What standards should apply to such firms?
83. Please identify the functionalities discussed in this Concept Release that could be applied to floor brokers that operate ATSs. Are there any other controls not mentioned in this Concept Release that should be under consideration?
84. Please supply any information or data that would help the Commission in deciding whether firms may or may not meet the definition of "floor trader" in
85. Do you believe that the registration of such firms as "floor traders" would effectuate the purposes of the CEA to deter and detect price manipulation or any other disruptions to market integrity?
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