Firms Join to Support Protection of Source Code Act10.19.2017
There has always been strength in numbers – from the days of the Conestoga wagon and crossing the Western US – to building coalitions to fight World Wars. Now several Wall Street organizations have joined forces to help protect electronic trading source code.
ISDA, FIA, FIA PTG, Modern Markets Initiative, and the U.S. Chamber of Commerce, have filed a joint letter expressing their collective support for Congressman Sean Duffy’s proposed “Protection of Source Code Act” HR 3948. https://www.govtrack.us/congress/bills/115/hr3948/text
The organizations believe that innovation and the process of utilizing ideas and creativity to engineer source code are integral to the U.S. economy, job growth, and the U.S.’ competitiveness in global markets and that the Act – which requires a subpoena in order for the SEC to compel a person to produce or furnish algorithmic trading source code or other similar intellectual property – sets a positive precedent for innovation policy.
The letter is as follows:
October 11, 2017
The Honorable Sean Duffy
2330 Rayburn House Office Building
Washington, DC 20515
RE: Support for “Protection of Source Code Act”
Dear Congressman Duffy:
“We thank you for your leadership in promoting policies that further the intellectual property protection of source code from cyber-breach and misappropriation. In particular, we are writing to express our collective industry support for your bill, “Protection of Source Code Act.”
We believe that innovation and the process of utilizing ideas and creativity to engineer source code – whether for a self-driving car, search engine, or trading algorithm – are integral to the U.S. economy, job growth, and our competitiveness in global markets.
We believe that the Protection of Source Code Act, which requires a subpoena in order for the U.S. Securities and Exchange Commission to compel a person to produce or furnish algorithmic trading source code or other similar intellectual property, sets a positive precedent for innovation policy. The Act satisfies Constitutional standards for due process and will help reduce the risk of intellectual property misappropriation and cyberbreach.
The Act also further reinforces the previously stated position of Commodity Futures Trading
Commission Chairman Giancarlo regarding the importance of safeguarding the intellectual property in
algorithmic trading source code from intrusions, whether from the government or private actors.
We appreciate your prudent and forward-looking approach. We believe it respects the rule of law and will help ensure that U.S. capital markets remain the envy of the world when it comes to innovation.
International Swaps and Derivatives Association
Futures Industry Association
FIA Principal Traders Group
Modern Markets Initiative
U.S. Chamber of Commerce
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Citigroup and Credit Suisse veteran brings deep experience in electronic trading and market structure.