How likely is manipulation and collusion in electronic markets driven by AI?

Delegates heard from Professor Álvaro Cartea of the Oxford-Man Institute of Quantitative Finance, University of Oxford who really knows his brief.

His keynote on reinforcement learning and the applications and risks of using AI in the capital markets was detailed and a must-see for capital market professionals with an eye on the future use of this technology in their sector.

Professor Cartea spoke about his research which has found that manipulative algorithms learn how predictive signals work and how to manipulate those signals in the market to their advantage – otherwise known as spoofing.

They can also co-ordinate actions to achieve supracompetitive outcomes, effectively manipulating markets.

Machines don’t have a moral compass but will look for the optimal outcome dependent on their programming and the rules they are following.

Brilliant, measured analysis of the likely impact of AI applied to financial markets for ICMA’s delegates.

hashtagICMAAGM2024 hashtagBrussels hashtagglobal hashtagEurope hashtagjoinus hashtagcapitalmarkets hashtagevent hashtagcsuite hashtagAI

Image preview