US CFTC Chair: Derivatives Market Will Enter New Development Stage, Should Not Blindly Follow Regulatory Consensus

TechFlow reports, on August 6, U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael Selig wrote in "The Economist" stating that the global derivatives market is entering a new stage of development, and financial innovation needs to take the lead, rather than introducing regulatory models that may limit market development.

Michael Selig pointed out that for decades, derivatives (including financial contracts such as futures, options, and swaps) have always been an important tool for businesses, farmers, investors, and financial institutions to manage risk and optimize capital allocation. Today, the notional value of the global derivatives market has exceeded 1200 trillion U.S. dollars, nearly half of which is regulated by the CFTC.

He stated that the U.S. leadership position in the derivatives field is built upon generations of market competition, strong institutions, effective regulation, and an open attitude towards innovation. For a long time, global regulatory agencies have regarded the CFTC as a reference standard for efficient market regulation.

Selig said, "Finance in the new era needs innovation, not consensus." The U.S. will not introduce regulatory measures that hinder market development, but will seek a balance between innovation and market efficiency. During his term, the U.S. will continue to play a leading role in derivatives market rulemaking and financial innovation, driving the market to maintain competitiveness.