Commodity Futures Trading Commission (CFTC) Commissioner Caroline D. Pham is renewing calls for open public engagement by the CFTC on evolving trends and innovation in market structure. Her statement comes as the CFTC approved Kalshi Klear LLC’s registration as a Derivatives Clearing Organization (DCO).
“There’s no doubt that we are seeing a renaissance in markets, ushered in by new technology that enables direct access and continuous all-to-all trading. What and how participants can buy, sell or trade—and with who—is changing rapidly. These new products and markets present new opportunities that are more accessible to more people, as well as risks. As U.S. regulators, we must recognize the trends in democratization of markets or we will be left behind. It is time for the Commission to take a forward-looking approach to prepare for the future by developing a robust administrative record with studies, data, expert reports, and public input.
“It is imperative that we fully understand these shifts in market structure to determine how best to ensure our markets remain vibrant and resilient while protecting all participants. I urge the Commission to support my recent proposal to hold a CFTC staff roundtable and invite input from industry leaders, market participants, other experts, and public interest groups to examine the issues presented by innovation in market structure such as direct access for both trading and clearing, increased retail participation, and new types of products.
“A CFTC staff roundtable is open and transparent and will provide the Commission with the best information and latest data to safeguard our markets while allowing innovation to flourish. The CFTC has successfully held many similar roundtables for decades as a best practice to address changes in the derivatives markets. Adopting a holistic approach to evolving market trends, rather than relying on ad hoc enforcement or registration orders, will help to establish clear rules of the road that promote responsible innovation and strengthen American competitiveness on a global stage.”
