REGULATION · EU
ECB issues framework for AI trading in financial markets
ECB publishes regulatory framework governing the use of AI and algorithmic trading in EU financial markets, addressing model transparency, latency-driven volatility, and circuit breaker triggers for AI-driven flash crashes.
WHY IT MATTERS
Banks deploying AI-driven trading desks must now document model logic, testing protocols, and kill-switch thresholds. Non-compliance creates enforcement risk and market-access barriers in EU.