In remarks at Regulation Week, Commodity Futures Trading Commission International Affairs Director Mel Gunewardena argued that international regulation has not kept pace with markets becoming programmable, interconnected, continuously traded and increasingly driven by autonomous artificial intelligence systems. He identified four gaps involving supervisory cooperation, financial stability oversight, global standard-setting governance and market safeguards, warning that frameworks organized around distinct institutions, products and jurisdictions may no longer capture how risk moves across the roughly USD 1.2 quadrillion global derivatives market. Gunewardena called for earlier cross-border notifications and real-time coordination during market stress, stronger representation of derivatives regulators in financial stability work and governance that gives greater weight to market scale, expertise and access to data. He also argued that circuit breakers and other safeguards designed for erroneous orders or algorithmic failures may not address autonomous systems operating as intended in thin, overnight or weekend markets, where price movements can transmit rapidly into regulated venues. The remarks also highlighted the CFTC's continuing review of how foreign markets and institutions access the United States and the cross-border arrangements supporting that access. Building on the agency's established focus on foreign trading venue access, Gunewardena said modern supervisory arrangements should address customer protection and market integrity as well as financial stability, economic and national security risks.
2026-09-03Commodity Futures Trading Commission
Commodity Futures Trading Commission official identifies four regulatory gaps as markets become continuous and autonomous
Commodity Futures Trading Commission International Affairs Director Mel identified four gaps in international oversight as derivatives markets become continuous, programmable and increasingly autonomous. He called for stronger real-time supervisory cooperation, greater derivatives expertise in financial stability oversight, more risk-focused standard-setting governance and safeguards suited to around-the-clock markets. The CFTC is also reviewing foreign market access and related cross-border arrangements, continuing its focus on modernizing oversight of non-U.S. participation.