EU AI Act enters force
The first comprehensive AI regulation from any major jurisdiction. Classifies AI systems by risk level with increasing compliance requirements. High-risk applications require transparency, auditing, and human oversight. Phased implementation runs through 2026.
The AI Act's financial carve-outs are extensive. Algorithmic trading models are largely regulated under existing MiFID II rules rather than the Act's new requirements. The US has no equivalent framework. Global rule-setting for trading AI remains, as of 2026, a race nobody is winning.
08 · AI Trading
AI systems are trading trillions. Large language models are reading news feeds and adjusting positions in milliseconds. No specific federal framework governs this class of behavior. The largest regulatory gap in financial history is being created in real time — and it is on track to be the longest-lived.
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