CFTC chief backs innovation in $1.2 quadrillion derivatives market
CFTC Chairman Michael Selig said regulators must give financial innovation room to lead as the global derivatives market enters a new phase of development. Selig rejects restrictive derivatives rules Writing in The Economist, Selig argued that regulators should avoid importing or copying rules that could limit competition and prevent new financial products from reaching the market. “The new era of finance needs innovation, not consensus,” Selig said. Derivatives, including futures, options and swaps, allow companies, farmers, investors and financial institutions to manage risk and allocate capital. Selig placed the global notional value of those contracts above $1.2 quadrillion, with markets under CFTC supervision accounting for nearly half of the total. The chairman said U.S. leadership developed through market competition, strong institutions, effective oversight and openness to new technology. Regulators in other countries have consequently treated the CFTCs approach as a model for derivatives supervision. However, Selig warned that international regulatory consensus should not become a reason for the United States to adopt restrictive frameworks. His position suggests the agency will weigh market efficiency and competitiveness alongside consumer protection when considering new products. CFTC expands its innovation-focused agenda Selig‘s remarks extend the approach he outlined after becoming the CFTC’s 16th chairman in December 2025. In his first public address,