Fintech Firms, Consumers Grapple Big Data Regulation in Latest Consultation

The Joint Committee of the European Supervisory Authorities (ESAs) has unveiled a new public consultation paper, which touched on the use of big data by financial instruments, as well as the role played by Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, according to an European Central Bank (ECB) statement.

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Big data is one of the fastest growing channels in the financial services industry, encompassing the availability and deployment of data, information technology, platforms and advanced Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term. However, to date, there has been a debate over the amount of regulation needed to properly supervise this space.

Consequently, the ESA has given entities and individuals a chance to lend their perspective on the role of regulation and whether or not any further action may be needed. Big data is an extremely important fintech component, in part because of the innovation and solutions it yields, in tandem with behavioral analysis which is already being utilized around the financial industry.

The fundamental purpose of the consultation is for the ESAs to understand and grapple what the big data phenomenon tangibly means for consumers, the broader financial industry, and regulators – all are invited to share their views, part of a consultation lasting until March 17, 2017.

Currently, the acting EU legislation on data protection, competition and consumer protection noticeably are lacking in their definition of big data, creating a regulatory blind spot in need of addressing.