US SEC Developing rules to Govern Use of AI on Trading Platforms.

The US Securities and Exchange Commission (SEC) is working on developing rules to regulate the use of artificial intelligence (AI) on trading platforms, due to concerns about conflicts of interest. Chair Gary Gensler emphasized the need for "new thinking" to address the challenges posed by technologies like predictive analytics and machine learning on financial stability. The SEC aims to promote responsible innovation while managing potential threats to public safety. Gensler has tasked SEC staff to propose new regulatory measures to handle conflicts arising from AI systems that consider both platform and customer interests. The SEC may unveil rule proposals later this year to govern AI and machine learning usage by investment advisers and broker-dealers.

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