The chairman of the Commodity Futures Trading Commission, Timothy Massad, told attendees at a conference in New York on Wednesday that the regulator is very concerned about the potential for disruptive events in the U.S. Treasury market and is already taking steps to address the growth of automated trading and increasing cybersecurity risks. Massad said the CFTC has finalized rules to implement its new authority under Dodd-Frank to prevent new forms of illegal behavior, such as spoofing and has brought enforcement actions on that front. New proposals include requirements for pre-trade risk controls and other measures to reduce risks of automated trading. The CFTC also wants to increase transparency regarding market maker incentive programs and self-trading to make sure it isn't illegal wash trading.
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