The Commodity Futures Trading Commission (CFTC) will examine how autonomous trading agents might operate in U.S. derivatives markets at an Oct. 28 forum, bringing potential oversight and market safeguards into the discussion.
The agency’s Innovation Task Force outlined two sessions in an agenda released Oct. 20. The first will consider whether systems the CFTC calls “Super Intelligence” could change trading, price discovery, risk management and oversight in derivatives markets. The forum will also examine how the technology is being developed and used, and how its wider adoption might affect U.S. markets.
The second session will focus on agents able to carry out financial transactions for market participants. Panelists will discuss where those systems fit within trading arrangements and what CFTC requirements might apply when an agent acts on a participant’s behalf.
The CFTC has framed the event around encouraging responsible use of the technology while protecting market participants from emerging risks. The agenda sets out questions for discussion and does not announce a regulatory decision.
CFTC Chairman Michael S. Selig is scheduled to give a keynote address after opening remarks by Innovation Task Force head Michael J. Passalacqua. The panel brings together Investment Company Institute technology and financial innovation director Andrew Kayiira and three company leaders: Ornn co-founder and CEO Kush Bavaria, Architect founder and CEO Brett Harrison, and Liquid Compute co-founder and CEO Ronit Jain. The roster also includes participants from Innovation Council Action, Tempo, OneChronos and Hedera.
The CFTC established the task force in March to work on regulatory approaches for artificial intelligence and autonomous systems, as well as crypto assets and prediction markets. The agency has identified clearer rules for innovators as one of its aims. It announced the public forum series in September, with the Oct. 28 event scheduled as the first.
The CFTC will stream the Oct. 28 forum live on its website.
