On December 15, 2017, the Commodity Futures Trading Commission (“CFTC“) announced a Proposed Interpretation concerning its authority over retail commodity transactions involving virtual currency, such as bitcoin. Specifically, the Proposed Interpretation sets out the CFTC’s view regarding the “actual delivery” exception that may apply to virtual currency transactions. The Proposed Interpretation is open for public comment for 90 days from publication in the Federal Register. To view the full article, click here.
Commodities and Futures Trading Commission
Commodities and Futures Trading Commission Offers First Draft Definition of High Frequency Trading
Scott O’Malia, a commissioner for the Commodity Futures Trading Commission, has proposed a seven-part test to be used as “building blocks” towards defining “high-frequency trading”. Mr. O’Malia suggests that an established definition of “high frequency trading” would form the first part of a three-stage regulatory approach aimed at addressing the acceleration of technologies in futures markets. It is unclear how these principles would work in practice or whether all of the requirements would need to be fulfilled to constitute “High Frequency Trading”.
The full text of Mr. O’Malia’s letter can be found here.