Financial Regulators Embrace Artificial Intelligence

The SEC began to do exactly that in reaction to the 2008 09 financial crisis and the 2010 flash crash systemic breakdowns that regulators didn t see coming. Hedge fund industry veteran Gregg Berman joined the SEC s division of trading and markets and spearheaded development of the Market Information Data Analytics System (MIDAS), which seeks to improve transparency to analyze trends and prevent crashes. The more ambitious Consolidated Audit Trail (CAT), an idea first floated in 2010 to give the SEC a complete database of market activity, is finally getting off the ground following the awarding of a contract in January to Thesys Technologies, the same trading technology company that worked with Berman on MIDAS.