Prof. Aline Darbellay (Centre for Banking and Finance Law at the University of Geneva) discusses “Algorithm-Driven Information Gatekeepers: Legal and Regulatory Aspects” in a presentation of 15′.
She argues that information gatekeepers manage the flow of information from issuers to investors. The focus of securities regulation was traditionally laid on mandatory disclosure requirements. In modern financial markets, information production is no longer the core issue. Concern has increasingly been raised about the role of information intermediaries as screeners of relevant information. She sheds light on the role of law and regulation in addressing the new types of issues relating to the use of intelligent algorithms to process financial information. With respect to user protection, the question arises as to how to mitigate the new forms of conflicts of interest that have emerged owing to the use of new types of gatekeepers such as digital platforms. With respect to systemic risk, there is a need to address whether reliance on algorithm-driven information gatekeepers will contribute to enhancing procyclicality in the financial markets, thereby potentially jeopardizing financial stability.
This presentation is part of an online seminar FinTech, Governance and Sustainability: Legal Obstacles and Regulatory Challenges.
The project stems from a partnership between the University of Exeter, the University of Geneva and KU Leuven, and falls within the Europe Network Fund (ENF). The project is supported by a University of Exeter Global Partnerships Award. The research team consists of Dr Joseph Lee, Centre for Corporate and Commercial Law, University of Exeter, Prof. Aline Darbellay, Centre for Banking and Finance Law and Department of Corporate Law, University of Geneva, and Prof. Joeri Vananroye, Institute for Commercial and Insolvency Law, KU Leuven.