CFTC Staff Issues Request For Comment On Artificial Intelligence Uses And Risks In Derivatives Markets

The Commodity Futures Trading Commission (CFTC) staff has published a Request for Comment (RFC) on the current and potential uses and risks of artificial intelligence (AI) in CFTC-regulated derivatives markets. In a recent speech, Chair Behnam explained that the RFC will help the CFTC evaluate "the need for future regulation, guidance or other Commission action" while aligning its approach with other financial markets regulators.

Chair Behnam identified the RFC as originating with the new AI task force, which was created last summer for purposes of "exploring the role that emerging technologies such as artificial intelligence and machine learning may play in violations of the Commodity Exchange Act and CFTC regulations; and ensuring that registrants adequately supervise their use of emerging technologies." This was confirmed at Chair Behnam's January 26 keynote at the ABA Derivatives Law committee, where he further stated that the RFC was "part of a greater vision"