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ARTICLE · 02 JANUARY 2025

CFTC Staff Takes A "Measured First Step" In Artificial Intelligence

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On 5 December 2024, the Commodity Futures Trading Commission (CFTC) Divisions of Clearing and Risk, Data, Market Oversight, and Market Participants issued a staff advisory...

United StatesFinance and Banking
Clifford C. Histed
Clifford C. Histed
Sarah V. Riddell
Sarah V. Riddell
Christopher J. Valente
Christopher J. Valente
Sydney E. Faehling
Sydney E. Faehling

Introduction1

On 5 December 2024, the Commodity Futures Trading Commission (CFTC) Divisions of Clearing and Risk, Data, Market Oversight, and Market Participants issued a staff advisory on the use of artificial intelligence (AI) by CFTC-regulated entities (the Advisory).2 The Advisory comes nearly a year after CFTC staff (Staff) issued a Request for Comment on the Use of Artificial Intelligence in CFTC-Regulated Markets, which garnered 26 responses and helped to inform the CFTC's guidance.3

Importantly, the Advisory does not create any new compliance obligations for derivatives market participants who use AI solutions. Instead, consistent with the CFTC's "technology neutral" approach, Staff took this opportunity to remind registered entities that they must continue to comply with existing compliance obligations, whether using AI or any other technology, either directly or with a third-party service provider. The Advisory highlights a number of AI use cases by

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