The Commodity Futures Trading Commission (CFTC) would like to learn more about how regulated entities might be using artificial intelligence (AI) in their compliance efforts, along with other applications.
The agency announced a request for comment Thursday to better inform staff on the current and potential uses and risks of AI in the derivatives markets. Responses received could influence future CFTC guidance, interpretations, policy statements, or regulations.
The deadline for comments is April 24.
“This [request for comment] will further support the CFTC as we strategically identify the highest priorities and return-on-investment projects with AI use cases internally to optimize our data-driven approach to policy, surveillance, and enforcement,” said CFTC Chair Rostin Behnam in a press release.
Applications of AI the CFTC is seeking information on include in trading, risk management, compliance, cybersecurity, recordkeeping, data processing and analytics, and customer interactions. Regarding compliance, the CFTC noted the potential impact of AI on functions including surveillance, anti-money laundering, and regulatory reporting.
In its request, the agency asked the following questions on compliance and risk management applications:
- How is AI being used in compliance?
- Are regulated entities using AI to comply with specific CFTC requirements, such as in the context of swap dealer business conduct standards?
- Is AI used to monitor or evaluate margin, capital, risk tolerances, credit, or position limits?
- Has AI been integrated into mechanisms to enforce compliance with margin, capital, or risk limits?
- Are AI programmers aware/taking steps to evaluate and mitigate harmful AI-to-AI interactions?
The request is in line with the Biden administration’s executive order on safe, secure, and trustworthy development of AI.
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