Statement of CFTC Commissioner Sharon Y. Bowen on the Launch of LabCFTC
May 17, 2017
I commend Acting Chairman Giancarlo and the CFTC staff for launching this important initiative. The pace of technological change in financial services is relatively unparalleled in history. In fact, overall financial technology venture capital funding grew 48% since 2011 and lending and payments related categories account for 74% of venture funding since 2006.
Regulators need to understand this change and how it may affect the markets we regulate. The futures and swaps markets are rooted in the last century, and we now oversee trading that occurs almost exclusively on screens where transactions happen faster than the blink of an eye. In light of this historical technological change, we must be prepared to change how we conduct our oversight and stand ready to adjust our rules in order to ensure the same level of fair competition and customer protection that the American public depends on now.
I also believe this initiative is yet another reason why the CFTC needs an expanded budget. With this type of transformational change, we need to invest in people and technology to understand and police this ever-changing marketplace.
I commend the LabCFTC initiative and the staff work that it took to launch this important task. I look forward to working with Acting Chairman Giancarlo on the work of LabCFTC.
Last Updated: May 17, 2017