CFTC seeks feedback on AI use in compliance and market dynamics
The CFTC announced that the request for comment complements the directives the Biden Administration established for the safe, secure and trustworthy development of artificial intelligence.
CFTC seeks feedback on AI use in compliance and market dynamics
The CFTC announced that the request for comment complements the directives the Biden Administration established for the safe, secure and trustworthy development of artificial intelligence.
The United States Commodity Futures Trading Commission (CFTC) would like to learn more about how regulated entities might use artificial intelligence (AI) in their compliance efforts and other applications.
The agency issued a comment request to enhance staff understanding of AI’s current and potential applications and risks in derivatives markets. Feedback received may impact future CFTC guidance, interpretations, policy statements or regulations.
The CFTC seeks input on AI applications in trading, risk management, compliance, cybersecurity, recordkeeping, data processing, analytics and customer interactions. In compliance, the agency highlighted AI’s potential influence on surveillance, Anti-Money
Laundering (AML) and regulatory reporting functions.
Supporting this, the CFTC Chair, Rostin Behnam, said the request for comment (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.”
Regarding the CFTC’s RFC, Commissioner Kristin Johnson said the call for feedback indicates an ongoing conversation involving various departments of the agency, including the Market Participant, Clearing and Risk, Market Oversight and Data divisions.
Johnson emphasized the importance of the CFTC’s understanding of how market actors adopt AI in the derivatives markets. Critically, the RFC asks respondents to weigh in on the proper definition of AI — how broad or narrow the definition should be, and
how to draw the line between AI and other current automated trading strategies.
As an activist in the field of artificial intelligence, my opinion is that strong laws should be established in this matter, of course, there is a small line between practical laws and restrictive laws, which I hope the legislators will pay the utmost attention to, which will ultimately improve the conditions for artificial intelligence developers. Don't be hard.
