- Swap dealers and futures commission merchants will be affected
- The new rules are proposed to include AI, cloud technology, and cryptocurrency
- As these are high-risk areas for investment
- Stakeholders have 60 days to comment
On June 1, the CFTC called for public comment on changes to the Risk Management Program (RMP). A spokesperson for the agency, Commissioner Christy Goldsmith Romero, advocates that the rules include measures aimed at reducing the possible adverse effects of operating in the cryptocurrency segment.
We note that the RMP provisions apply to two categories of counterparties – swap dealers and commission-based futures traders (FCMs).
The Commodity Futures Trading Commission (CFTC) is inviting comments on the following:
- management and organizational structure;
- specific risks that the RMP does not address or controls are too “soft”;
- reporting requirements and certain policies.</nbsp;
Stakeholders have 60 days to respond to the agency.. The CFTC will then consider specific amendments to the rulebook.
Commissioner Christy Romero has advocated that the RMP include areas such as AI, cloud technology and cryptocurrency. In her view, these industries carry significant risks, with dealers increasingly paying attention to them.
We wrote earlier that the CFTC favors expanding the regulatory framework for clearing organizations. The department believes that the rules should cover all counterparties that conduct such activities, including in the cryptocurrency market.