The former CFTC commissioner Bart Chilton went on record with CNBC saying that the Source Code requirements in Regulation Algorithmic Trading (REG-AT) is extreme overkill and a very slippery slope.
Many in the listed derivatives trading industry strongly believe that ideas and methods that are expressed in our Source Code is critically important and extremely sensitive. It is our proprietary information. As such it should be provided with the utmost
the highest level of legal (and governmental) protection.
Requiring the government to have full access to proprietary code bases is indeed a slippery slope even outside of the trading industry.
Once the CFTC sets the precedent, then what next? What other government employees will have access to proprietary trade secrets that many internal staff at the trading firms don’t have access.
Bart has made a very compelling argument here.
See CNBC for the full story.