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CFTC Rule 38.156

Requires designated contract markets to maintain an automated trade surveillance system that can detect, investigate, and analyze potentially abusive or anomalous trading activity within 24 hours of trade execution.

Rule Overview

Jurisdiction: United States

Regulator: CFTC

Topic: Surveillance

Overview
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This regulation mandates that a designated contract market (DCM) must have an automated trade surveillance system capable of identifying and investigating potential trade practice violations.

The system must be able to process and analyze all trades and orders from each trading day within 24 hours, ensuring timely oversight of market activity.

The system must include a range of analytical capabilities, such as identifying trade anomalies and patterns, computing trading statistics and positions, reconstructing trading sequences, and facilitating ad hoc and in-depth data analysis by compliance personnel.

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