The CFTC expects the block chain to change its way of monitoring the market


nnTrap: The Trump government is committed to modernizing the federal government’s business and trying to manage government affairs like Silicon Valley technology giants. But data management is a daunting job for many regulators such as the Commodity Futures Trading Commission (CFTC), but it is also an indispensable task. As a result, the Commodity Futures Trading Commission (CFTC) is currently conducting early testing in response to this modernization initiative, hoping to use the emerging technology of block chain technology to help the regulator better analyze large amounts of data and improve market regulation the way.n
nTranslation: Clovern
Today, government agencies that are struggling with data management can monitor corporate transactions in real time – but the plan is going through the test of the complex procurement process.n
Trump government is committed to the modernization of the federal government business, and strive to manage government affairs like Silicon Valley technology giants.n
The Commodity Futures Trading Commission (CFTC), a market regulator, is conducting early testing of this modernization initiative. The regulator wants to use the block chain (the bottom-level capitalization of digital currency bitmaps, and is increasingly used by financial institutions to record and track transactions) to help the organization better analyze large amounts of data.n
Experts say the process required to procure new technology may hamper the ability of government agencies to test innovative products, which allows government agencies to use only outdated and inefficient systems.n
Jeff Bandman, who has been a CFTC financial and technical adviser before this year, said:n
n”When you know exactly what you want and how it works, the purchasing process will work well, but when you try to understand the power of a new technology, these processes may not work well effect.”n
nBandman set up the Bandman Advisors consulting firm after leaving the CFTC. He said that these procurement processes often prompted government agencies to take a cautious approach in order not to waste taxpayers’ money on any role.n
The CFTC has about 700 employees and has been given new responsibilities after the financial crisis. The regulator is now responsible for overseeing most of the 483 trillion global swaps market, so it is necessary to analyze piles of data while closely observing the market to prevent misconduct and maintain market stability.n
For a long time, the agency has been distressed by data management. A report issued by the Office of the Inspector General of the CFTC earlier this year accused the Committee of collecting data on market activity, saying that the current data is “largely unavailable”. The report states that “the valuation of the day-to-day market system is outdated; the value is illogical or impractical; the product classification is incorrect; the liquidation status is incorrect; the fixed ID format is infeasible and disorderly.”n
To achieve the modernization of management, CFTC Chairman J. Christopher Giancarlo proposed a plan to invest in financial technology (such as block chain technology). In his speech in May, he announced the plan, saying:n
n”The CFTC was stalled in the twentieth century, and we had to broaden the door of our institutions and open up regulatory thinking to benefit from financial and technological innovation.”n
nGiancarlo praised the advantages of using block-chain technology, enabling the CFTC to access transaction data for regulated transaction participants in real time rather than sorting out transaction data to understand market conditions after the completion of such transactions.n
R3 is based on the block chain technology, financial platform providers, there are already more than 80 financial companies to use the platform. “In the current system, regulators rely entirely on the regulators to provide information to them,” he said, adding that if the CFTC joins the alliance, the agency’s market regulator will be able to understand the real-time transactions of its governing firms data. R3 has such a close relationship with financial regulators in other places (including Canada, Hong Kong and Singapore).n
Daniel Gorfine, chief innovation officer at CFTC, said the current committee officials are discussing joining the chain chain alliance, R3 is a coalition that it is discussing. He said that the cost is not the main obstacle, the technology is relatively unsuccessful nature of the test makes such an investment in the present is an adventure.n
Gorfine said:n
n”We may have adopted this technology in the future, but at the moment we just want to learn and better understand the technology that supports these different chains of chains.”n
nThe CFTC announced last week that Gorfine will also serve as the principal staff of the Agency’s Technical Advisory Committee, which will be headed by Brian Quintenz, the new Republican commissioner. Since February 2016, the committee has not held any meetings.n
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Difficult to judgen
If the CFTC decides to join a chain chain alliance, the alliance will have to go through a series of so-called job plans of the US General Services Agency to set a service price, and the provider needs to be approved and registered as a government contractor. And the institutions that have gone through this series of processes have called it a waste of time for the Kafka-style barrier, and it is impossible to determine whether or not it is approved.n
Counselor Mercury Strategies Partner, CFTC Member Sharon Bowen Former Assistant Justin Slaughter mentions the rules that Congress has designated for decades to prevent corruption and government waste, and says:n
n”We have set a lot of restrictions on purchases, and these rules are very good, but these restrictions make it difficult for the government to purchase cutting-edge technology, and we are always lagging behind other peers.”n
nIn recent years, the cost of overruns of government agency technology projects and the erroneous deployment of technical projects have deepened the concerns of Congress and the Office of Government Responsibility to prevent waste.n
David Powner, director of information technology at GAO, cited several major government technology projects before the House Oversight Committee, which, despite spending huge sums, failed to meet its goals. He mentioned that the US Department of Veterans Affairs wanted to upgrade its patient program, but its estimated expenditure reached $ 127 million, and the project was canceled in 2009, referring to the modernization of the Personnel Administration’s retirement system Project, the project spent $ 231 million after the cancellation in 2011.n
The research firm Standish Group International conducted a study of the federal government IT project between 2007 and 2016 and found that only 3% of the large federal government IT projects were successfully completed – the report’s definition of success is: Plan to complete, meet user expectations and remain within budget.n
However, the federal government’s spending on technical projects is still being criticized for having a little higher than originally planned. The Trump government allocated $ 96 billion in federal government information technology projects in the 2018 budget, up from $ 94 billion in 2017.n
Giancarlo’s claim for upgrading CFTC technology may be supported by the agency, which also wants to take a slice of the technology. Kathleen Hamm is a senior strategic advisor to CEO of Promontory Financial Group’s network solutions at IBM’s consulting firm. According to her previous experience as Deputy Minister of Finance of the Obama administration, she said that to be successful, the government’s technical projects needed close cooperation with senior management.n

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