CFTC Launches LabCFTC Fintech Initiative | Practical Law

CFTC Launches LabCFTC Fintech Initiative | Practical Law

The CFTC launched LabCFTC, an initiative to promote CFTC engagement and collaboration with fintech technologies and innovation opportunities.

CFTC Launches LabCFTC Fintech Initiative

Practical Law Legal Update w-008-1887 (Approx. 4 pages)

CFTC Launches LabCFTC Fintech Initiative

by Practical Law Finance
Published on 18 May 2017USA (National/Federal)
The CFTC launched LabCFTC, an initiative to promote CFTC engagement and collaboration with fintech technologies and innovation opportunities.
On May 17, 2017, the CFTC announced the launch of LabCFTC, an initiative to encourage fintech innovation in markets subject to CFTC oversight and to aid the CFTC's engagement with, and collection of information on, new fintech and regtech solutions and innovation opportunities.
Fintech refers to technological innovation in the financial sector. Regtech is a part of fintech that is focused on innovative solutions for regulatory compliance. LabCFTC aims to promote fintech and regtech innovation by facilitating:
  • CFTC engagement with the fintech innovator community.
  • CFTC collaboration with the fintech industry to benefit CFTC regulated-market participants.
  • CFTC participation in research to improve the use of technology within the CFTC.
  • CFTC monitoring of fintech developments to ensure CFTC regulatory support.
  • CFTC cooperation with US and foreign financial regulators regarding the use and development of fintech for regulatory purposes.
  • Fintech information sharing.
  • CFTC engagement with academia and professionals regarding CFTC-relevant fintech applications.
The CFTC hopes that LabCFTC will be the CFTC's focal point for engagement with both fintech and regtech.
To encourage CFTC engagement with fintech innovation, LabCFTC includes two core components:
GuidePoint is designed to facilitate communication between the CFTC and the innovator community. It is a channel for inquiries and feedback on responsible innovation and suggestions to enhance fintech development.
GuidePoint has three main goals:
  • Offering an additional point of contact within the CFTC.
  • Providing general information, including CFTC regulations and publicly available information, which aid in the development and implementation of ideas.
  • Providing individual feedback to innovators.
GuidePoint inquiries may come from current or potential CFTC registrants or other businesses that impact CFTC-regulated markets and that are engaged with fintech or regtech. GuidePoint feedback is equipped to provide information to entities that may not be familiar with CFTC regulations.
Examples of technologies that may be the subject of potential inquiries for further products and development include algorithmic trading, blockchain and distributed ledger technology (DLT) cloud computing, data management and analysis, machine learning, artificial intelligence (AI), advanced analytics, and programmable hardware. The CFTC states that it is open to a wide range of inquiries without prioritization or exclusion of any particular technology.
GuidePoint is currently available. Inquiries and suggestions may be sent to [email protected].
CFTC 2.0 is a program designed to provide the CFTC with a platform to develop new fintech ideas, study current uses and applications, and provide a secure testing environment for fintech innovations as applied to the CFTC regulatory landscape. The goal of CFTC 2.0 is to enable the CFTC to be able to apply fintech initiatives in a way that will improve the effectiveness and efficiency of CFTC activities.
CFTC 2.0 inquiries may be sent to [email protected].