The World Federation of Exchanges (WFE) welcomes the opportunity to comment on the EU’s targeted consultation on artificial intelligence in the financial sector. As the global industry association for exchanges and clearing houses, we represent the providers of over 250 pieces of market infrastructure that see more than $124tr in trading pass through them annually (at end-2023).
Exchanges and CCPs’ extensive experience with technology makes them well-placed to offer views on the development of AI. While these technological innovations and the associated concerns about managing generative AI are significant, it is important to remember that, as trusted third parties providing secure and regulated platforms for trading securities, our members are already carefully scrutinising tools and establishing controls to govern AI use.
The WFE advises that:
- AI brings valuable contributions to financial services. Whether focused on individual productivity, operational efficiency or the development of new products, AI can help reduce costs and improve customer experience.
- AI has many and varied potential use cases in financial services and for exchanges and CCPs in particular.
- Challenges exist with the development and implementation of AI but these can be overcome by careful management.
- Reliance on third parties is a concern that regulators should monitor. Most importantly where these third parties have market power or dominance over most of the industry. However, outside of LLMs there is not a significant concentration of AI models.