Regulatory Alerts2026-04-13
AI in Capital Markets: Balancing Innovation and Integrity
The Dutch Authority for the Financial Markets (AFM) issued an exploratory analysis report detailing how artificial intelligence reshapes the pre-trade, execution, and post-trade phases of capital markets while amplifying systemic integrity risks. The regulator mandates that market participants retain full accountability for AI-driven outcomes, emphasizing that human oversight, transparent model design, and rigorous data governance are essential to prevent correlated behaviors, feedback loops, and opaque trading practices. To safeguard market functioning, the AFM calls for adaptive supervision that distinguishes between trusted and untrusted AI systems, alongside the establishment of clear accountability standards and infrastructure recalibration before autonomous trading agents are deployed at scale.