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China signals tighter oversight of quant funds and AI trading
The move comes after recent losses highlighted risks from crowded, technology-driven trades, Bloomberg reported.
China appears to be moving toward tighter oversight of quantitative trading firms and the use of artificial intelligence in financial markets, according to a report cited by Hedgeweek.
The regulator focus follows losses that exposed the risks linked to crowded technology-driven trading strategies, the outlet said, pointing to the potential need for clearer rules and controls.
Hedgeweek said the developing approach is intended to address how quant funds and AI-powered trading systems operate, particularly where trades become concentrated and losses can spread across similar positioning.