April 24, 2024 - In a letter filed with the Commodity Futures Trading Commission (CFTC) today, the FIA Principal Traders Group (FIA PTG) joined FIA, CME Group and Intercontinental Exchange in responding to the CFTC’s request for comment on the uses of artificial intelligence in derivatives markets. The letter commends the CFTC for seeking public input and hopes this is the first of many steps the CFTC will take to better understand any potential, risks, and use cases for AI.
The letter makes several high-level recommendations:
- The CFTC should consider its existing rules and guidance prior to taking action.
- The CFTC should approach the topic of AI based upon specific use cases, not the technology itself.
- The governance and controls around the use of AI should depend upon the type, size,and complexity of the business.
The letter cautions the CFTC against approaching the subject of AI with an outlook of regulating the technology generally; instead supporting the CFTC’s long-standing regulatory focus on risks while remaining technology neutral.
