AI Governance in Trading: FIX’s Regulatory Recommendations for Singapore
Rarely does a single consultation reveal just how unprepared an industry is for a technology, and that is exactly what happened when FIX engaged Singapore’s Monetary Authority on AI regulation in trading.
Jim Kay, FIX’s executive director, joins host Ajay Shamdasani to break down ten key recommendations submitted to Singapore’s Monetary Authority. The conversation covers everything from defining AI specifically within trading contexts to managing large language models inside algorithms. What makes this discussion particularly striking is how Kay frames generative AI as fundamentally different from traditional trading controls, not just in complexity but in kind.
The core tension throughout the episode is this: financial firms have long-standing governance frameworks for algorithmic trading, yet public LLMs introduce third-party technology companies that operate entirely outside the traditional financial ecosystem.
Can compliance professionals really govern systems they do not fully understand technically? Kay argues yes, drawing a direct parallel to algorithmic trading oversight where knowing what questions to ask matters more than reading code.
Interestingly, the episode also tackles the serious talent shortage in this space, noting that professionals combining AI expertise with financial risk management are exceptionally rare. (Bloomberg’s cross-domain training model gets a mention as a potential blueprint.)
If you want to understand where AI governance in financial services is actually heading, this conversation is essential listening.
Our Guest
Jim Kay
Jim has worked in the financial industry for 25 years, mostly in equities electronic trading, market structure and regulatory implementation. He has been involved in FIX in various capacities over most of this period, having served as GSC co-chair for eight years, a director for five and as co-chair of various working groups.
Our Host
Ajay Shamdasani
Ajay Shamdasani is a veteran writer, editor and researcher based in Hong Kong. He holds an AB in history and government from Ripon College, JD and MIPCT degrees from the University of New Hampshire Franklin Pierce Law School, and an LLM in financial regulation from the Illinois Institute of Technology’s Chicago-Kent College of Law.
His 15-year long career as a financial and legal journalist began as deputy editor of A Plus magazine – the journal of the Hong Kong Institute of Certified Public Accountants. From there, he assumed the helm of Macau Business magazine as its editor-in-chief, and later, joined Asialaw magazine as its deputy editor.
More recently, he spent close to seven years as a senior correspondent with Thomson Reuters’ subscription-based trade-wire service Regulatory Intelligence/Compliance Complete (previously called Complinet) in Hong Kong. While there, he covered regulatory developments in that city, as well as Singapore, India and South Korea.
