I'm going to keep this vague on purpose because I don't know if this is a regulatory requirement or not... A friend of mine called me yesterday and said he spoke to a prop firm about trading, etc. He does 100% automated trades. The prop firm said flat out that he would need to disclose his source code as well as strategies (that are fully automated) if he were to trade there and that this was an SEC and compliance rule. My first reaction was that this was total BS but its a pretty well-known and reputable firm (which I will not be disclosing so don't ask). Are there any SEC/FINRA or even in-house compliance regulations that would require a shop to have or understand the source code or automated strategies to "prevent against manipulation" or the like?