U.S. CFTC Seeks Input on AI Use in Derivatives Markets

The U.S. Commodity Futures Trading Commission (CFTC) has issued a request for comments (RFC) to gather insights into how regulated entities use artificial intelligence (AI) in their compliance efforts and other applications within derivatives markets. The CFTC is interested in understanding the current and potential applications, as well as the risks associated with AI in various areas, including trading, risk management, compliance, cybersecurity, recordkeeping, data processing, analytics, and customer interactions. The feedback received through the RFC may influence future CFTC guidance, interpretations, policy statements, or regulations related to the use of AI in the derivatives markets. The comment period is open until April 24, 2024.

The CFTC’s move reflects a growing interest in understanding and regulating the use of AI in financial markets. Regulators are keen to explore the impact of AI on market integrity, surveillance, and investor protection. Participants in the derivatives markets should take note of the regulatory focus on AI applications and provide feedback to contribute to the shaping of future policies in this space. (Source: cointelegraph)