The Moscow Exchange is taking a decisive step in combating unfair practices by launching an artificial intelligence-based system to identify trades with signs of market manipulation and insider trading. This marks the end of the era of "fix-ups," where unscrupulous participants could evade responsibility using complex schemes.
The new toolkit will be deeply integrated into all stages of compliance processes. The system will take over the preprocessing of automated analysis signals, evaluating hundreds of thousands of trades and related metrics. It will identify coordinated actions of market agents, combine results, and form a database of analytical conclusions with behavioral metrics. The prepared findings will then be submitted for review by compliance specialists, allowing them to focus on complex cases and known patterns of unfair behavior.
How AI Will Change Trade Oversight
According to the exchange's estimates, the use of AI assistants and deep automation of processes over the next one to two years will free up expert resources. This is expected to increase the number of investigations and reduce the time for implementing measures. Instead of spending time on routine analysis of thousands of orders, specialists will be able to conduct in-depth studies of complex cases and identify new, previously unknown manipulation schemes.
Irina Grekova, Senior Managing Director for Compliance and Business Ethics at the Moscow Exchange, emphasized that the development of technological control tools has become one of the key areas for enhancing market stability and transparency. According to her, AI accelerates the processing of large data sets, which is critically important in the context of high-frequency trading.
What This Will Bring to the Market
The implementation of AI is not just a technical update but a systematic effort to strengthen participants' trust in organized trading. The goal is to create a reliable market infrastructure where every participant can be confident in the fairness of the game. This is especially relevant given that the Moscow Exchange also works with cryptocurrencies, where the risks of manipulation are traditionally high.
Expert opinion: The Moscow Exchange's initiative is an important signal for the entire financial sector, including the cryptocurrency space. While traditional exchanges are implementing AI for oversight, the crypto industry should consider its own monitoring mechanisms. Otherwise, the transparency gap between traditional and digital markets will only widen, which could push regulators toward stricter actions against crypto exchanges.