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- Title
ARTIFIFICIAL INTELLIGENCE & ARTIFIFICIAL PRICES: SAFEGUARDING SECURITIES MARKETS FROM MANIPULATION BY NON-HUMAN ACTORS.
- Authors
Slemmer, Daniel W.
- Abstract
Securities traders are currently competing to use Artificial Intelligence (A.I.) in order to make more profitable decisions in the marketplace. While A.I. provides superior abilities in recognizing market patterns, its complexity can obscure its decision-making process beyond human comprehension. Problematically, the current securities laws prohibiting manipulation of securities prices rest liability for violations on a trader's intent. In order to prepare for A.I. market participants, both courts and regulators need to accept that human concepts of decision-making will be inadequate in regulating A.I. behavior. However, the wealth of case law in the market manipulation doctrine need not be cast aside. Industry regulators should instead require A.I. users to harness the power of their machines to provide meaningful feedback in order to both detect potential manipulations and create evidentiary records in the event that allegations of A.I. manipulation arise.
- Subjects
MARKET manipulation; PRICES of securities; FINANCIAL markets; STOCKBROKERS; ARTIFICIAL intelligence
- Publication
Brooklyn Journal of Corporate, Financial & Commercial Law, 2020, Vol 14, Issue 1, p149
- ISSN
1934-2497
- Publication type
Article