CFTC Chairperson Suggests That Dispersed Ledger Technology Can Help Market Regulators

The growth of monetary technology can assist in enhancing the control over derivatives markets. This is according to the information given by a CFTC spokesperson on Wednesday this week.


The speaker publicized this information during Fintech week meeting at Georgetown University. The spokesman Christopher Giancarlo revealed that DLT technology may be leveraged to computerize particular regulatory procedures. It is commonly known as quantitative regulation. This approach will enable the market watchdog to supervise markets hence, decreasing expenditures.

Automation Of Services Will Decrease Costs

Market participants agree that there is an increasing desire to apply monetary technologies in digital markets. Computerization of services will assist in decreasing costs and market inefficiencies caused by delays. Going forward, entities should digitize transactions because technology keeps on advancing every day.

Machines are normally faster than human labor which can sometimes be unreliable. Furthermore, the use of technology will reduce the number of staff in the organization. Therefore, the use of processors to execute transactions is inevitable all over the world. People are also imagining a day when all regulatory documents and their applications will be computerized. Compliance can largely automated or created into commercial processes through smart contracts. Supervisory reporting is done on a real-time basis by use of DLT systems.

CFTC’s machines also have a capability of communicating regulatory requirements and examine information that comes via such arrangements.

In the future, the CFTC may have the ability to analyze information faster. This will make it easier for the market watchdog to measure the effects of particular actions taken. As a result, they can take appropriate action whenever the need arises.

Regulations can be amended for the purpose of producing better results. The current speed limits of executing transactions are still low and should be increased. If the issue of safety and slow flow of traffic is addressed, more potential investors are likely to embrace this technology.

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