The Commodity Futures Trading Commission created two task forces for environmental fraud as well as cybersecurity and emerging technologies in the derivatives market.
CFTC’s Division of Enforcement delegated in-house lawyers and investigators who will serve as litigators and subject matter experts to address issues relevant to IT and environment-related misconduct, the commission said Thursday.
The Cybersecurity and Emerging Technologies Task Force will investigate the potential exploitation of artificial intelligence, machine learning and other emerging technologies to violate CFTC regulations and the Commodity Exchange Act. The team will be responsible for overseeing registrants’ use of such tools, particularly in the protection of consumer information.
The Environmental Fraud Task Force will examine and prosecute, if necessary, violations in derivatives and spot markets focused on addressing climate change. The team will look into misleading claims about the benefits of carbon credit purchasing, as well as environment, social and governance strategies.
“We must be dynamic and proactive in protecting derivatives markets against evolving threats,” CFTC Chairman Rostin Behnam stated. “Recent events that directly impacted derivatives markets highlight the concerns that cybersecurity breaches raise in our markets. Meanwhile, as more firms tout their environmental credentials and as voluntary carbon markets grow, there exists the potential for fraud and manipulation.”