Federal Register: Antidisruptive Practices Authority Contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act

From Markets Reform Wiki
Jump to navigation Jump to search
Timeline, Interpretive Guidance on Disruptive Practices
Proposal Date Comment Deadline Effective Date
March 18, 2011 May 17, 2011 May 28, 2013

On October 26, 2010, the Commodity Futures Trading Commission (CFTC) held its third in the series of open meetings to consider the issuance of proposed rulemakings under the Dodd-Frank Act. One of the agenda items was an advance notice on proposed rulemaking (ANPRM) regarding disruptive trading practices.<ref>Open Meeting on Third Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on March 3, 2011.</ref>

The ANPRM, submitted on October 26, 2011, focuses on disruptive trading practices, makes it illegal to engage in any trading, practice of conduct that:

  • violates bids or offers;
  • demonstrates intentional or reckless disregard for the orderly execution of transactions during the closing period; or
  • is, is of the character of, or is commonly known to the trade as, “spoofing” (bidding or offering with the intent to cancel the bid or offer before execution).

The Proposed Interpretive Order[edit]

After taking into consideration the comments from letters and roundtable panelists regarding the ANPR, the commission decided that, rather than issue a final rule proposal regarding disruptive practices, the regulator would instead issue an interpretive order; an addendum to existing rules. When final, the interpretive order will have the same legal force and effect as a final rule. The final rule is expected by early 2012.<ref>CFTC Seeks Comments on Trading Practices. Thomson Reuters. Retrieved on March 23, 2011.</ref>

Read order.png

Related Documents: Fact Sheet, Q&A, and Rule Proposal as it Appeared in the Federal Register[edit]


<references />

MarketsReformWiki Sponsors

RSM US LLP ADM Investor Services Cinnober Fidessa