From groundbreaking AI models at TradeTech 2025 to the CFTC’s SEF rule reversal, the escalating battle over AI data and copyright, and the growing demand for standardized AI protocols in trading — here are the 5 most critical developments this week.
AI in Trading: The 5 Key Takeaways This Week
1. AI as a Tool – Insights from TradeTech 2025
- Data Quality is Non-Negotiable: Clean data is the foundation for successful AI.
- AI Empowers Analysts and Traders: It accelerates analysis and identifies opportunities faster.
- Governance and Security Are Critical: Legal, compliance, and risk teams must be involved from the start.
- Training Drives Adoption: Schroders’ “Genie” AI tool now has 4,000+ weekly users, tied to KPIs.
🔗 Read more here
2. HFT Trading Evolves into AI-Driven Modelling
FlowHFT is a groundbreaking AI-powered HFT model using imitation learning. Unlike traditional HFT, which relies on historical data, FlowHFT dynamically adapts to changing conditions.
Key Features:
- Adaptability: Learns from multiple expert models.
- Real-Time Adjustment: Adapts trading strategies on the fly.
- Superior Performance: According to the researchers, FlowHFT consistently outperforms traditional HFT models.
🔗 Read more here
3. CFTC SEF Rule Reversal: Tech Platforms Get a Boost
The CFTC has withdrawn its 2021 SEF Registration Advisory, which required many platforms to register as Swap Execution Facilities (SEFs). This opens the door for innovative trading platforms, including those using AI, to operate without burdensome registration. Read more here – https://acrobat.adobe.com/id/urn:aaid:sc:EU:9a8b4d66-1c1b-4a29-b05a-078fadd18a95
- Greater flexibility for AI-powered trading models.
- But contrasts with stricter EU/UK rules under MiFID II/MiFIR – specifically Trading Venue Perimeter (TVP).
4. Copyright and AI: Legal Battles Heat Up
- 🇺🇸 U.S.: Trump fired Copyright Register Shira Perlmutter over her stance on AI data use. Read more here – https://www.theguardian.com/technology/2025/may/12/uk-ai-copyright-trump-blockchain-india-pakistan
- 🇬🇧 UK: House of Lords pushes back against AI firms using copyrighted works without permission. Read more here – https://www.theguardian.com/technology/2025/may/15/lords-examine-new-amendment-to-data-bill-to-require-ai-firms-declare-use-of-copyrighted-content
- 🇪🇺 EU: Meta faces a potential class action over using Facebook/Instagram data for AI – https://noyb.eu/en/noyb-sends-meta-cease-and-desist-letter-over-ai-training-european-class-action-potential-next-step
- These legal battles are likely to reshape AI data usage globally.
As always, thanks for reading! Let me know what you liked, didn’t and what you would like to see more of.
Many thanks
Rebecca
