Algorithmic Trading is now coming into existence after a long period. With the help of Artificial Intelligence(AI), it is possible to explore much more about the algorithms. It is quite efficient to take better decisions on behalf of the human being by evaluating results and reworking models at a much faster rate.
In the Financial market, we need more accuracy which could be attained by AI. It has the potential to increase the proficiency of analysts and makes a substitute for them. Besides this, AI can frame best possible answers of questions which will help them to take better investment decisions. Meanwhile, blockchain is playing a vital role in some parts of the lifecycle by making data more secure to make it accessible to everyone. Blockchain technology has enabled functions like efficient proxy voting and has minimized the systematic risks for insider trading.
In the era of blockchain technology, regulators could be proven as the most significant barrier or enablers in the adoption of the technology. Amidst a study, it was found that a considerable section of organizations do not believe on the regulatory issues and have proven to be a hinder in the blockchain investments. Moreover, many market regulators and global exchanges across geographies, including the NYSE and Deutsche Borse have already evaluated the feasibility of blockchain, and various other advantages can be obtained by adopting this technology.
Japan Exchange Group is authorized by the Financial Services Agency of Japan, to implement the blockchain technology as its core trading infrastructure under the supervision of the Tokyo Stock exchange. In early 2015, Nasdaq took the initiative and used its Nasdaq Linq blockchain ledger technology for recoding private securities transactions.
There are various other regulators nationally and globally which are hesitating to adopt this technology. Instead, they would preferably wait and watch the methodology to explore and understand much more about the blockchain’s regulatory and policies before making the next move. Overall, there is undoubtedly slow progress on the development of the necessary regulatory frameworks, legislation and industry standards that are required to move from pilots to production.