CFTC Chairman: Blockchain Technology could Help Market Regulation

[ChainDD report] November8 (ChainDD) Progression of financial technologies could be helpful for improving regulation for derivative markets , according to Christopher Giancarlo, Chairman of the Commodity Futures Trading Commission (CFTC), the U.S.’s regulator of financial derivatives.

On his speech in Georgetown’s Second Annual DC Fintech Week, Giancarlo stressed distributed ledger technology (DLT) and emphasized in particular that it could be applied in automatic regulation process—which he called “quantitative regulation”. Such automation can increase efficiency of regulation and reduce cost.

“When paired with systems inspired by DLT that standardize and distribute data to market actors – and even regulators – we begin to see a world where the majority of standard tasks are managed by machines,” Giancarlo said.

Giancarlo added: “We can also envision the day where rulebooks are digitized, compliance is increasingly automated or built into business operations through smart contracts, and regulatory reporting is satisfied through real-time DLT networks.”

He noted that through the above effort will allow CFTC analyze real-time data more quickly and evaluate impact of some rules or behavior it already have taken more easily. And the rule also can be modified when necessary to ensure its optimal effect.

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