Firms engaged in algorithmic trading strategies may wish to have their Chief Compliance Officer register as a Securities Trader or Securities Trader Principal.
June 2016 the SEC approved an amendment expanding the scope of persons required to register as “Securities Trader” as it pertains to firms engaged in Algorithmic Trading Strategy. Rule amendment 16-21 applies to persons who supervise day-to-day activities or who are primarily responsible for design, development, or significant modification to algorithm systems. The rule is intended to ensure persons associated with these functions possess knowledge or and responsibility for the design and the intended trading strategy, as well as technological implementation. This registration requirement is expected to ensure system changes are designed with regulatory compliance in mind as well as business objectives.