CFTC Denies Asking Renaissance For Code

When the New York Post first reported that Renaissance Technologies was asked by the CFTC to provide access to their trading algorithms, it sent shivers up the collective spines of trading lobbying groups as well as the broader technology development world. For a regulator to demand a review what amounts to the secret formula to a business innovation was “precedent-setting,” with concerns for the source code leaking a very real possibility.  But does the CFTC even have the authority to investigate methods of placing orders on an electronic exchange? And what about the issue if it were to involve a market destabilizing flash crash with potential national security implications? The lines are murky at best - meet Regulation AT.