Scope of Regulation
A. AI Trading Platforms
Includes algorithmic, machine learning, and deep learning-based systems. Licensees must demonstrate:
- Model transparency, explainability, and auditability;
- Fairness and non-discriminatory decision-making;
- Real-time risk controls, guardrails, and circuit-breakers;
- Effective human oversight and intervention mechanisms.
B. Manual Trading Platforms
Includes human-executed trades via brokerages, signal providers, and discretionary funds. Requirements include:
- Order execution standards and best-execution policies;
- Segregation and safeguarding of client funds;
- Robust KYC/AML procedures and monitoring;
- Conflict of interest identification and management.