Request of the National Futures Association for Approval of Interpretive Notice to NFA Compliance Rule 2-9: Supervision of the Use of Automated Order Routing Systems

概要

The Commodity Futures Trading Commission (the "Commission" or "CFTC") has determined, pursuant to section 17(j) of the Commodity Exchange Act (the "Act"), to review the National Futures Association's ("NFA's") proposed Interpretive Notice of (the "Interpretive Notice") to its Compliance Rule 2-9 regarding supervision of the use of automated order routing systems ("AORSs") that route orders through futures commission merchants ("FCMs"). The Interpretive Notice would require that NFA members adopt and enforce written procedures in the areas of security, capacity, and credit and risk management controls in connection with AORSs, but it provides flexibility for members to design procedures tailored to their own circumstances. Because NFA's policy is to set standards rather than to require specific technology, other procedures than those described in the Interpretive Notice may comply with the general standards for supervisory responsibilities imposed by NFA Compliance Rule 2-9. The proposed Interpretive Notice would become effective upon approval by the Commission. Therefore, the Commission has determined to provide an opportunity for public comment prior to its consideration of the In