As AI use proliferates, the advisory reminds CFTC-regulated entities of their existing obligations and the CFTC’s intention to monitor for ongoing risks.
On December 5, 2024, the staff of the Commodity Futures Trading Commission’s (CFTC) Divisions of Clearing and Risk, Data, Market Oversight, and Market Participants published an advisory on the use of artificial intelligence (AI) in CFTC-regulated derivatives markets (the Advisory). As the development and adoption of AI products, services, and systems continue to accelerate, the Advisory reminds market participants of their existing obligations — which the Staff describes as “technology-neutral” — under the Commodity Exchange Act (CEA) and the CFTC Rules thereunder. As an advisory, the Staff’s pronouncement does not create any new rules or obligations but sheds light on the Staff’s expectations for the agency’s regulated entities.
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