Capital Markets Authority Explores Regulatory Use of AI
The meeting addressed a number of topics and initiatives aimed at enhancing integration and coordination among the financial markets of the GCC countries, developing regulatory and supervisory cooperation frameworks, and keeping pace with the latest developments in financial markets. It also discussed ways to leverage modern technologies and artificial intelligence to enhance the efficiency of supervisory and oversight activities.
The Committee reviewed updates on the implementation of initiatives referred to the GCC Financial Markets (Stock Exchanges) Committee, including those related to encouraging the listing and trading of bonds and sukuk in the financial markets of GCC countries, promoting dual listing for companies and funds in GCC markets, and studying the electronic linking of deposit and clearing companies and institutions, thereby contributing to stronger market interconnectivity and facilitating investment flows among them. The Committee also discussed updates on the mutual registration regulation for investment funds and the completion of the necessary regulatory requirements to commence its implementation.
The Committee reviewed the outcomes of the work of the GCC Financial Markets Integration Strategy Working Group, including the initiative for exchanging expertise and experiences among financial market authorities, as well as the results of the study on the model for investment account opening requirements and Know Your Customer (KYC) procedures, and an assessment of the feasibility of converting it into a mandatory model in the future.
The Committee discussed the “Markets Authority’s” proposal to enhance the use of modern supervisory technologies (SupTech) and artificial intelligence (AI) in the supervision and oversight of financial markets in GCC countries. The proposal included several mechanisms aimed at strengthening GCC supervisory cooperation, such as the exchange of supervisory indicators and early warnings, studying the preparation of a GCC guide for using AI technologies in trading supervision, enhancing the exchange of practical expertise among supervisory and oversight departments, and building a GCC knowledge base on violations and financial crimes, thereby supporting the efficiency of regulatory authorities and contributing to enhanced investor protection.
