The latest move comes at a time, when a number of trading market accidents and technical glitches have questioned the capability of financial markets amidst technology growth.
Launching a list of 100 queries that covers all aspects of trading, such as pre- and post-trade risk controls, design, testing and supervision of automated trading systems, the regulator has asked market participants to give the feedback.
In a release, CFTC said, "The operational centers of modern markets now reside in a combination of ATSs and electronic trading platforms that can execute repetitive tasks at speeds orders of magnitude greater than any human equivalent.
"Traditional risk controls and safeguards that relied on human judgment and speeds must be reevaluated in light of new market structures."
The commission has published its ‘Concept Release’ and has sought extensive public comment related to pre-trade risk controls and post trade reports and other measures.
Further, it has invited public to share their comment on system safeguards related to the design, testing and supervision of automated trading systems (ATSs) and additional protections designed to promote safe and orderly markets.
CFTC commissioner Bart Chilton said, "In general, those involved in financial markets seem to have blindly accepted that technology is almost always a good thing…But it doesn’t work well enough if we continue to see aberrations."
An advisory committee meeting has been called later this week, to address the main issues highlighted in the document.
