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…
CFTC Denies Asking Renaissance For Code
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.