Articles by author
Non-bank financial intermediaries (NBFIs): leverage, liquidity and interconnectedness
This article examines the evolving regulatory approach to non-bank financial intermediaries (NBFIs), focusing on the European Commission’s 2024 consultation on macroprudential tools. Using alternative investment funds (AIFs) as a case study, the article explores the extent to which existing regulatory frameworks mitigate potential systemic risks posed by NBFIs.
10 APR 2025Artificial intelligence in financial markets: systemic risk and market abuse concerns
The prospect of widespread adoption of advanced artificial intelligence (AI) models in financial markets, particularly reinforcement learning and deep learning techniques, has raised significant concerns among regulators. Although there is no clear evidence that these AI techniques are currently prevalent in trading systems, regulators warn that their future integration could heighten systemic risks and introduce novel forms of market manipulation. This Spotlight article examines whether the characteristics of advanced AI systems create new forms of market instability and explores the challenges they present to existing market abuse detection and prevention frameworks.
22 NOV 2024
