Regulatory Alerts2026-04-13
Human Involvement and Clear Responsibility Crucial for AI Deployment in Capital Markets
The Dutch Authority for the Financial Markets (AFM) warns that rapidly advancing AI and multi-agent systems in capital markets can autonomously steer price formation and amplify vulnerabilities through shared data and social media manipulation. The regulator requires market participants to maintain transparent decision-making, visible human oversight, and clear accountability to prevent uncoordinated algorithmic collusion and information-based market distortions. To address these emerging risks, the AFM is strengthening its supervisory framework, tightening rules on algorithmic trading, and collaborating with national and international partners to ensure innovation remains balanced with market integrity.
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