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ARTICLE · 26 MARCH 2024

CFTC's MRAC Tackles AI And Climate Change

Hogan Lovells Cadwalader
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On Friday, March 15, 2024, Commodity Futures Trading Commission Market Risk Advisory Committee convened two roundtables in Washington DC.

United StatesFinance and Banking

On Friday, March 15, 2024, Commodity Futures Trading Commission ("CFTC") Market Risk Advisory Committee ("MRAC") convened two roundtables in Washington DC.

The first roundtable was organized by MRAC's Future of Finance Subcommittee and focused on the use of artificial intelligence ("AI") in financial markets today, what risks the use of AI poses, what aspects of financial regulation are implicated AI and what the markets and regulators can anticipate in the future. Participants in the roundtable agreed that the AI has already been a presence in financial markets for several years and is clearly here to stay. While the focus of regulation should not be on the rapidly evolving technology itself, regulators should focus on the use of such technology and the accountability for such use by market participants. The Subcommittee also addressed some of the issues raised in CFTC's January 25, 2024 request for comments on the use of AI in CFTC-regulated markets as well as

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