IMPACT OF TECHNOLOGY ON SECURITIES REGULATION​

Due to the increased adoption of technology, the securities regulation has been shaped in numerous ways with several positives and negatives for the regulators, investors and the market players. This research paper seeks to discuss the roles of technology in securities regulation by analysing recent developments including, but not limited to, blockchain technology, artificial intelligence, big data analytical technology and algorithmic trading. The paper also discusses the development of regulators to these technological disruptions showing the shift in regulatory treatments, Transition to RegTech solutions, digital asset regulation, and international cooperation.  In addition, the paper considers the issues of the regulators’ inability to adapt to the technologically fast-paced environment, the question of innovation against the background of protection risks for investors, and further perspectives for regulation. This paper in seeking to identify the impact that technology has on securities regulation both in the present and the future seeks to aid the regulatory bodies to understand how they can manage the securities markets effectively as the financial markets evolve. The paper covers how regulators respond to these technological disruptions in terms of changed regulatory treatment, the move to the use of RegTech solutions, digital asset regulation, and international cooperation. On top of this, the paper addresses regulators’ challenges in pace with this technological landscape, the tension between innovation and investor protection, and future directions in regulation.