Finance ministry to use AI in stock market surveillance

The surveillance activities aim to detect violations in the stock market, playing an important role in ensuring transparency and promoting the sustainable development of the stock market, the ministry said.

A customer follows stock market movements at a securities company. — VNA/VNS Photo Trần Việt

In addition to administrative penalties and preventive measures to stop illegal activities in the stock market, the State Securities Commission – an entity under the ministry – has submitted to the Government and the National Assembly a proposal to amend and supplement regulations on market manipulation, to ensure stronger legal effectiveness.

Given the rapid growth of the stock market, using AI (smart software trained on large data sets) to monitor transactions is a measure being researched, the ministry said.

This is because AI can detect abnormal behaviours such as price manipulation, insider trading, or other irregular trading activities in large transaction data.

Machine learning algorithms can analyse large volumes of transactions and identify complex patterns that traditional systems might struggle to detect, allowing for more timely and accurate interventions.

AI can also help to forecast market trends and optimise investor data management. This creates a solid foundation for transparency and plays a key role in the sustainable development of Việt Nam’s stock market, while improving the effectiveness and accuracy of stock market surveillance.