The role of technological innovations in institutional regulation of the financial capital market

Abstract

Financial technologies (fintech) have been actively developing in recent years and are overturning conventional notions about the financial capital market. The article explores the role of technological innovations in institutional regulation of the financial capital market. Thanks to innovations such as blockchain technology, artificial intelligence, and machine learning, market participants are able to make more accurate and faster decisions, ensure transaction security and reliability, and have more transparent and efficient risk management. The article describes some examples of successful implementation of technological innovations in institutional regulation of the financial capital market, such as the use of blockchain in supply chain management, automation of risk management, and real-time processing of large volumes of data. A mathematical model of optimal institutional regulation of the financial capital market is presented. However, in addition to the advantages, the use of technological innovations also carries potential risks such as breach of confidentiality, incomplete information of market participants, and the possibility of technological glitches. Therefore, it is important to develop and effectively implement measures to regulate the use of fintech, which must comply with rules and legislation.