Evaluating the Impact of Regulatory Frameworks on Risk Management Practices and Fraud Detection Technologies in High-Frequency Trading Environments

Authors

  • Zainuddin Bin Yusof Universiti Teknologi Sarawak, Department of Computer Science, Jalan Ling Kai Cheng, Sibu, 96000, Malaysia.
  • Ahmad Zulkifli Universiti Malaysia Pahang, Department of Computer Science, Jalan Gambang, Kuantan, 26300, Malaysia.

Abstract

This paper examines the impact of regulatory frameworks on risk management practices and fraud detection technologies in high-frequency trading (HFT) environments. As HFT continues to evolve, it poses unique risks to market stability and integrity, necessitating advanced risk management techniques and sophisticated fraud detection systems. The study analyzes key regulatory frameworks such as the SEC's Market Access Rule and MiFID II in Europe, evaluating their effectiveness in mitigating risks associated with HFT. It also explores technological advancements in fraud detection, including artificial intelligence, machine learning, and blockchain, highlighting their role in combating market manipulation and insider trading. Finally, the paper discusses the ongoing challenges and the need for continuous innovation in both regulation and technology to ensure market integrity.

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Published

2024-04-13

How to Cite

Yusof, Z. B., & Zulkifli, A. (2024). Evaluating the Impact of Regulatory Frameworks on Risk Management Practices and Fraud Detection Technologies in High-Frequency Trading Environments. Advances in Intelligent Information Systems, 9(4), 48–60. Retrieved from https://questsquare.org/index.php/JOURNALAIIS/article/view/82

Issue

Vol. 9 No. 4 (2024): JOURNALAIIS:APRIL-2024

Section

Articles

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Copyright (c) 2024 Advances in Intelligent Information Systems

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