US CFTC seeks comment on compute derivatives as AI demand grows

Aug 19 (Reuters) - The ‌U.S. Commodity ​Futures ​Trading Commission said on Wednesday it was seeking public comment on compute ‌derivatives contracts, as the AI boom drives ⁠demand for new market products tied to computing power.

The ‌request is an early ‌step by the derivatives regulator toward setting rules for markets that could help companies and ​investors manage the cost and availability of compute, a critical input for artificial ⁠intelligence.

Here are some details:

• Wall Street investors have chased the AI ​trade for years, betting on companies and assets poised to benefit from the ​technology's rapid adoption.

• The ‌derivatives regulator said it is seeking comments on compute cash markets, market ⁠oversight and manipulation concerns, customer protection and perpetual compute futures.

• "America cannot win the AI race without ⁠a robust derivatives market for compute," CFTC Chairman Michael Selig ​said in a statement.

• "This request for comment is the first step toward establishing clear rules of the road ‌for American compute markets," he added.

• The rapid expansion of AI ‌has increased demand for computing power, prompting questions ⁠about how companies ‌can hedge exposure ​to compute costs and availability.

(Reporting by Manya Saini in Bengaluru; Editing by Tasim ‌Zahid)

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