CFTC – The U.S.CommodityFuturesTradingCommission ChairmanChristopherGiancarloaforementioned in an exceedinglyspeech on 7th Nov. that the technological advances,as well asDistributed Ledger Technology [DLT],might facilitateregulators bettersupervisetradingmarkets.
Giancarlo delivered his speech titled “Quantitative Regulation: Effective Market Regulationin an exceedingly “Digital Era” at the FinTech Week conference at Georgetown Universityschool of law. The chairmanself-addressedrisingdigital technologies, along with DLT, big data,automaticdataanalysis, and AI,and therefore their impact ontradingmarkets and themonetarylandscape.
In terms of applying these technologies totradingmarkets, Giancarlosaidthat “we beginto envision a worldwherethe bulkof normaltasksaremanaged by machines” since, combined with DLT, automation facilitatespricereduction and improves trade matching, processing, clearing and settlement.
Giancarloinstructedthat higher-order computing technologiescanprobablybecome “ubiquitous” totrade goodsandmonetaryderivatives markets. Hestatedthat the CFTC along with other regulatorsgot tokeep up with the advances of AIso asto succeed.
Giancarloadditionalacknowledgedthat the commissionshouldbe proactive inrestrictive information assortment,automaticanalysis, and data-driven policy application, and eventually become a “quantitative regulator.”
Speaking on the challengesrepresentedbydataautomation and machines and their impact on labor markets, Giancarlodeclaredthat “being a quantitative regulatordoesn’tmeanreplacinghuman judgment and market intelligence; it simplymeansreinforcing it:”
“Itmeansliberatingagencyemployeesfrom repetitive and lowworthtasks tospecialize inhighworth activitiesthat needtheirknowledgeablejudgment and domaininformation. Itmeansmarshalling qualityknowledgethat’sexpeditiouslyand, perhaps, algorithmicallyanalyzeduponwhichhuman judgementmay be deployed, unfurled andenlarged.”
The chairmaninstructedthat DLT wouldfacilitateregulators analyzeinformation, real-world outcomes, and success in satisfyingrestrictiveobjectives, “rather thandeemstatic rules andlawsthat wereplacedin situwhile notknowingthe resultsor consequencesthey’ddrivewithin themarket.”
Explaining further, he added:
“Wealso canenvision the daywhererulebooksaredigitized, compliance isprogressivelyautomatedordesignedinto business operations throughsmartcontracts, andrestrictivenewsisgladthroughreal time DLT networks.”