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Journal of Financial Market Infrastructures

Risk.net

Responsible use of artificial intelligence in financial market infrastructures

Jorge Cruz Lopez

  • The paper shows that AI is shifting from a support function to a decision shaping component of FMIs, affecting incentives, market behavior, and financial stability.
  • Because FMIs provide systemically important public and club goods, AI failures can propagate across markets, requiring stronger accountability and resilience.
  • Rather than constraining innovation, responsibility is essential: unmanaged AI adoption can undermine trust, coordination, and legitimacy, weakening the stability FMIs are meant to safeguard.
  • The paper introduces a principles based framework (Explainability, Data, Governance, and Ethics) to support safe, legitimate, and sustainable AI use in FMIs, consistent with international standards and public interest mandates.

Artificial intelligence (AI) is increasingly embedded in the design, operation and oversight of financial market infrastructures (FMIs), including payment systems, central counterparties, securities settlement systems and collateral frameworks. These applications range from fraud detection and operational monitoring to risk measurement, margin setting and the operationalization of public policy. While AI offers the potential to enhance efficiency, resilience and financial stability, its use within FMIs raises unique and heightened concerns, given their systemic importance and public-good characteristics. This paper examines the current and prospective role of AI in FMIs, analyzes key risks and opportunities, and it develops a principled framework for the responsible use of AI based on the principles of explainability, data stewardship, governance and ethics (EDGE). It argues that responsibility is not a constraint on innovation but a necessary condition for trust, legitimacy and the sustainable use of AI in FMIs.

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