CFTC and the technology challenge

FTSE Global Markets

Pressure has been mounting for Federal regulators as they are tasked with increased oversight of complex and dynamic markets. Jim Toes, chief executive officer, Security Traders Association (STA) speaks to the efficacy of financial regulators, stating: “It is imperative that regulators have data which is quantitative and qualitative. In addition, regulators need to establish working relationships with the participants they have oversight of and the investors they are charged to protect. A combination of these factors is crucial in order for any regulator to be effective.” Tyler Peterson reports on the implications of regulators working in an increasingly technology-driven financial market.

The Commodity Futures Trading Commission (CFTC) is charged with overseeing the US futures and options markets that have a notional value of approximately $31trn, and now with the previously unregulated swaps markets under its purview that has a notional value of $400trn, the Commission is under pressure to do more under tight budgetary constraints.

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