CFTC to discuss the application of blockchain on derivatives markets

The CFTC plans to discuss the application of blockchain technology on the derivatives markets at a meeting of its Technology Advisory Committee on 26th January.

The Commodity Futures Trading Commission is set to discuss the application of blockchain technology to derivatives markets at a meeting of its Technology Advisory Committee later this month.

Te hearing will take place on January 26 at the agency’s Washington DC headquarters and will be open to the public.

A notice on the CFTC website says ”The TAC will discuss: (1) The Commission’s proposed Regulation Automated Trading (“Reg AT”); (2) swap data standardization and harmonization; and (3) blockchain and the potential application of distributed ledger technology to the derivatives market.”

The agency said that it any written statements submitted to the committee will be published later on the CFTC website.

The hearing comes after the CFTC in September said it will regulate bitcoin and other digital currencies as commodities, cementing the technology’s position under its remit.

CFTC Commissioner Christopher Giancarlo said last month that distributed open ledgers have to the potential to revolutionise financial ecosystems.

“Distributed ledgers will have enormous implications for financial markets in payments, banking, securities settlement, title recording, cyber security and the process of collateral management that is made infinitely more complex by new regulations,” he said.