Artificial intelligence in the financial sphere: an international perspective

The special topic of the fifth issue of the Financial Markets Regulation Review is artificial intelligence (AI) implementation in financial institutions. The article sheds light on the emergence and stages of development of artificial intelligence, and examines current and future approaches to its application in the financial sphere. Over the next three years, AI will be introduced primarily into financial analysis, risk analysis, portfolio management, and trading. Special attention is paid to its use in identifying unfair practice in stock market trading and combating financial fraud. Positive aspects of AI application include the potential for considerable cost cutting of formerly expensive financial services, and an increase in the number of their consumers.

The Regulatory Novation section provides a detailed account of the progress of the Single EU Capital Market initiative and recounts strategic development priorities for 2017 in the Japanese and Chinese economies, as well as enhanced measures to combat violations in China’s FX market and capital flight.

The Topical Trends section is devoted to the use of blockchain technology in the UK, the USA, Senegal, and China. The Infrastructure section covers the evolution of the Fed’s strategy in US payment system development, and the improvement of EU regulation of covered bonds.

The review also draws attention to reports by the International Organisation of Securities Commissions (IOSCO) on the protection of retail investor rights and recommendations to improve the reporting quality of benchmarks.

Comments and suggestions, including those regarding the coverage of specific topics, can be submitted by email to svc_regulationnews@cbr.ru.