Post by account_disabled on Mar 10, 2024 10:08:52 GMT
Renowned futurologist Amy Webb founder of the Future Today Institute released her annual letter on trends for signaling an interesting possibility given the risks of artificial intelligence: the need for prior authorization of algorithms so that they can be used in the market. The idea deserves careful reflection and in this text she sought to explore two questions.
Firstly we need to understand what the current requirements are for someone to be able to sell automated investment analysis and recommendation solutions operations automation and automated portfolio management.
Secondly I explore the possible consequences Phone Number Data of imposing a prior and specific authorization regime so that solutions based on artificial intelligence can be offered in the capital markets.
Rock
Today: essence over form
There is no specific regulation on financial products and services that use artificial intelligence. Therefore the essence of the product or service determines whether or not the relevant standards apply regardless of the technology used.
For example if AI is used to prepare an analysis report in accordance with CVM Resolution No. or investment recommendation in securities the person or company responsible for offering the solution must be registered as an analyst of securities. Similarly if the scope of the service provided corresponds to securities consultancy the exercise of the activity will be subject to registration as regulated by CVM Resolution No. . Furthermore managed portfolio solutions and automated portfolio management such as a robot manager and the service provider must be registered as a portfolio administrator in accordance with CVM Resolution No. as well as Anbima rules.
Solutions for algorithmic trading with some interference on the part of the end investor are in a peculiar situation. In general the offering of solutions of this nature is treated as technological products that are a means of offering a regulated service in a similar way to what happens with analysts and consultants.
Thus if a broker offers a solution for configuring entry and exit points based for example on historical trading data then the responsibility for service failures falls on the broker as an intermediary in accordance with CVM Resolution No. . The automation of operations through the SmarttBot platform is an example of a solution close to what we could call “ broker as a service ” as well as other products that allow in addition to the visualization of intraday data the programming of purchases and sales via a regulated intermediary who will be responsible for the service offered to investors.
Firstly we need to understand what the current requirements are for someone to be able to sell automated investment analysis and recommendation solutions operations automation and automated portfolio management.
Secondly I explore the possible consequences Phone Number Data of imposing a prior and specific authorization regime so that solutions based on artificial intelligence can be offered in the capital markets.
Rock
Today: essence over form
There is no specific regulation on financial products and services that use artificial intelligence. Therefore the essence of the product or service determines whether or not the relevant standards apply regardless of the technology used.
For example if AI is used to prepare an analysis report in accordance with CVM Resolution No. or investment recommendation in securities the person or company responsible for offering the solution must be registered as an analyst of securities. Similarly if the scope of the service provided corresponds to securities consultancy the exercise of the activity will be subject to registration as regulated by CVM Resolution No. . Furthermore managed portfolio solutions and automated portfolio management such as a robot manager and the service provider must be registered as a portfolio administrator in accordance with CVM Resolution No. as well as Anbima rules.
Solutions for algorithmic trading with some interference on the part of the end investor are in a peculiar situation. In general the offering of solutions of this nature is treated as technological products that are a means of offering a regulated service in a similar way to what happens with analysts and consultants.
Thus if a broker offers a solution for configuring entry and exit points based for example on historical trading data then the responsibility for service failures falls on the broker as an intermediary in accordance with CVM Resolution No. . The automation of operations through the SmarttBot platform is an example of a solution close to what we could call “ broker as a service ” as well as other products that allow in addition to the visualization of intraday data the programming of purchases and sales via a regulated intermediary who will be responsible for the service offered to investors.