U.S. regulators have to rethink who they hire to cope with AI

The technologies revolutionizing Wall Street have left Washington regulators playing a perpetual game of catch up.

Traders used to leave paper trails when they broke the law - emails revealing that they had inside information about a company’s earnings, instant messages laying out a conspiracy to manipulate prices or phone recordings discussing an illegal hot tip.

See the graphic: Robots of Wall Street are coming for these trading jobs

Now government watchdogs have to figure out how to look under the hood of machines running lightening-fast algorithms or machine-learning software. The danger is that cheaters will be able to hide abuses or will accidentally turn a software glitch into a market meltdown. And there are few legal precedents in which regulators have used computer code as evidence to prosecute misconduct.

To keep up, agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission might have to rethink whom they hire. 

Hit the link below to access the complete Bloomberg News article:

Regulators Can't Keep Up With Wall Street's Robot Invasion

Wall Street’s Robots Still Have a Lot to Learn About Being a Human Trader


JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News