The Commodity Futures Trading Commission (CFTC) has finalized new rules to manage risks associated with electronic trading on designated contract markets (DCMs). These rules require DCMs to adopt measures to prevent, detect, and mitigate market disruptions or anomalies that might occur due to electronic trading. The regulations emphasize flexibility by allowing each DCM to tailor their risk controls based on their specific market needs. This approach aims to ensure stable and fair trading environments on electronic platforms.
Simple Explanation
In simple terms, the CFTC made new rules to help prevent problems when computers are used to trade things like stocks. These rules make sure that the places where trading happens have plans to stop and fix any computer problems that might cause trading to go wrong.