CFTC pushes innovation in US$1 quadrillion derivatives market

• CFTC leaders backed regulatory innovation across the global derivatives market, which they said exceeds US$1 quadrillion in notional value.
• The agency signalled support for new technology and digital asset infrastructure in derivatives trading.
• Officials said innovation must be balanced with market integrity, risk management and investor protection.

CFTC officials backed regulatory innovation across the global derivatives market, which they said exceeds US$1 quadrillion in notional value.

The agency said new technology and digital asset infrastructure could improve efficiency in derivatives trading and clearing.

The discussion covered blockchain-based infrastructure, tokenisation and other technology used in derivatives markets.

CFTC officials said innovation should be supported while maintaining market integrity, risk controls and investor protection.

The derivatives market includes futures, options and swaps used by financial institutions, corporations and other market participants.

The comments suggest US regulators remain engaged with digital asset innovation while continuing to focus on oversight of large financial markets.