SEC proposes new rules to tackle the misuse of artificial intelligence in investment processes
New rules are focused on tackling the way predictive data and similar technologies can allow firms to place their interests ahead of those of investors.
New rules are focused on tackling the way predictive data and similar technologies can allow firms to place their interests ahead of those of investors.
Asset managers also discussed headcount with a third saying they intend to add more traders to the desk, along with operations talent in the build-up to market structure and regulatory changes.
With the expiry of the SEC ‘no-action’ letter based on enforcement surrounding research services, industry experts provide insights on the impacts and possible solutions.
Surge comes as SEC logged a record $6.4 billion in penalties last year.
Without admitting or denying the regulator’s findings, PIMCO has agreed to a cease-and-desist order and a censure; will pay a combined penalty of $9 million.
New proposals would include the requirement for covered clearing agencies to have policies to establish a risk-based margin system which monitors intraday exposure on an ongoing basis.
Both firms acknowledged that they violated recordkeeping provisions of the federal securities laws, with HSBC and Scotia agreeing to pay penalties of $15 million and $7.5 million, respectively.
With the US confirming its shift to T+1 settlement in 2024, Wesley Bray looks at the impact this will have globally, whether or not the UK and EU should follow suit and how trading desks will be impacted by the move.
Without admitting or denying the SEC’s findings, Chatham and its founder agreed to pay over $19.3 million in combined disgorgement, prejudgment interest and civil penalties to settle the charges.
Expected to expire on 3 July 2023, the SEC’s no-action letter would allow US investors to benefit from cost transparency and the freedom of broker selection that European investors have achieved through Mifid II.