The Commodity Futures Trading Commission (CFTC) issued a request for comment last week for information on the current and potential uses and risks of artificial intelligence (AI) in the derivatives markets the CFTC regulates.
The RFC is seeking comments on the definition of AI and its applications, including its use in trading, risk management, compliance, cybersecurity, recordkeeping, data processing and analytics, and customer interactions. It is also looking for feedback on the risks of AI, including risks related to market manipulation and fraud, governance, explain-ability, data quality, concentration, bias, privacy and confidentiality and customer protection.
“The RFC complements the directives the Biden Administration established for the safe, secure, and trustworthy development of artificial intelligence, and embodies good government. It prioritizes promoting responsible innovation and ensuring we understand current and potential AI use cases and the associated potential risks to our jurisdictional markets and the larger financial system. This allows us to better align our supervisory oversight and evaluate the need for future regulation, guidance, or other Commission action,” CFTC Chair Rostin Behnam said. “This RFC will further support the CFTC as we strategically identify the highest priorities and return-on-investment projects with AI use cases internally to optimize our data-driven approach to policy, surveillance, and enforcement.”
CFTC staff will consider the responses to this request in analyzing possible future actions by the CFTC, such as new or amended guidance, interpretations, policy statements, or regulations.
The RFC was issued through the CFTC’s divisions of Market Oversight, Clearing and Risk, Market Participants, and Data and the Office of Technology Innovation.
Comments will be accepted until April 24.