Congressional Research Service identifies risks as derivatives market embraces AI

The Congressional Research Service has produced a report on artificial intelligence use in the financial derivatives markets overseen by the Commodity Futures Trading Commission, as market participants increasingly pick up AI tools in areas such as risk management, fraud detection and compliance.

The usage raises “potential policy issues” around cybersecurity and “third-party risks from services provided by outside information technology firms,” CRS finds.

“Other questions involve how to assure that generative AI does not lead to market manipulation and, more...