Our AI and Algo Trading Fast Track session focused on the questions of how to govern and control agentic AI systems in trading, and how that fits into the existing algorithmic trading regulatory framework. The group discussed the FIX AI Working Group’s ‘Problem Statement’, requiring real-time knowledge of agent identities, their instructions and intent, their controls, and their actions. This included a deep-dive into ‘Verifiable LEIs’ and their role in identifying agents and their owning companies. There was some challenge to the feasibility of accurately defining agent instructions, how all of this works in dynamic multi-agent systems, and the compatibility of all of this with the MiFID algorithmic trading framework, all of which will be fed back to and picked up by FIX’s AI and algorithmic trading working groups over the coming weeks
Following on from the AI/Algo discussion, we switched to digital assets and technology. A key focus was the recent white paper from the FIX Trading Community, GDF and Deloitte – “The Convergence Imperative” – and its key findings. As summarised by one of the presenters, “Beyond technical connectivity, the challenge is to make coexistence work economically and operationally: avoiding unnecessary duplication, preventing new liquidity silos, and agreeing on common standards and clear responsibilities. The aim is for different infrastructures to work as one market from the perspective of institutions and their clients.”
There was some lively debate on the likely future scope of the rollout of DLT, with strong opinions expressed on the likelihood of DLT replacing the more high-volume financial infrastructure, particularly relating to central clearing. The paper itself notes that infrastructure interoperability will need to be the way forward and its contributors, themselves financial services practitioners, do not all see every part of ‘legacy’ infrastructure being replaced.
These topics and more are being covered in FIX’s digital assets committee with working groups focusing on technology standards and workflow/messaging standards for securities tokenisation and digital cash.
