JP Bruynes Quoted in Fundfire Article on Regulation AT Concerns
Akin Gump investment management partner JP Bruynes was quoted in the Fundfire article “Hedge Funds Fret over Sharing Source Code,” looking at what the Commodity Futures Trading Commission (CFTC)’s Regulation AT could mean for hedge funds. The article addresses matters such as compliance and the potential for additional costs to funds amid concerns over having to share proprietary source code.
Last month, the article notes, the CFTC issued a supplemental proposal attempting to address many of the concerns over the commission’s requirements for automated trading. Under the supplemental framework revisions, the CFTC will only be able to ask for code using a subpoena or “special call,” a regulatory move that requires commission approval.
While the supplemental proposal has attempted to streamline requirements, whether it will be further modified or enacted as proposed is still uncertain, according to Bruynes, given the uncertainty over who president elect-Trump may appoint to the two vacancies on the commission.