The Financial Markets Standards Board (FMSB) published a Spotlight Review, AI in trading: A practitioners’ view of the current landscape, setting out how artificial intelligence is being used in electronic trading systems and the governance considerations as adoption increases across global wholesale markets. The review, developed by a working group of practitioners from FMSB member firms, describes AI deployment in wholesale markets as still at a relatively early stage, with experimentation accelerating as computing power and access to tools improve. It concludes that market-facing AI is not currently autonomous, but embedded within existing trading infrastructure under direct and indirect human supervision, supported by established algorithmic trading and model risk controls. Existing control frameworks are seen as addressing many AI-related risks, but may need to be kept up to date as applications scale and become more complex, with clear human accountability remaining essential. While fully autonomous AI in trading could emerge and create systemic risks, the review says such systems are not yet present in financial markets. FMSB’s AI Working Group plans to continue work in this area, with the stated aim of developing specific good practice guidance on model risk management and trading controls for AI models.

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