The use of SupTech to enhance market supervision and integrity
OECD · OECD business and finance outlook · 2021
Digital technologies and data – including Artificial Intelligence (AI) -- hold the potential to automate and thus improve the efficiency and effectiveness of regulatory, supervisory and enforcement activities. These functions have become increasingly complex, given the substantial increase of data of regulatory relevance to be processed in recent years, along with the growth of digital market forces posing new challenges. Market regulators and public enforcement authorities have turned to supervisory technology (SupTech) tools and solutions as a means to improve their surveillance, analytical and enforcement capabilities, which can in turn have important benefits for financial stability, market integrity and consumer welfare. This chapter takes stock of the most common uses of SupTech by regulatory, supervisory and enforcement authorities to date, identifies its associated benefits, risks and challenges, and outlines considerations for devising adequate SupTech strategies.