LO
DeploymentCognitive automation2023-03-03
Four large proprietary traders told the Dutch markets regulator that 80% to 100% of their algorithms for liquid instruments rely on machine learning
Quantitative analystoccupation page →
Event date / reported
2023-03-03
Evidence stage
DeploymentAn employer has put it into production. Can move the baseline — weighted by scale and how similar the setting is.
Tasks this bears on
Signal research and strategy design
Finding patterns in data that predict returns or risk, and turning them into trading or investment strategies.
Being augmented✓ Evidence-backed
Where this applies
The Netherlands, four major proprietary trading firms. The regulator says its study found that 80% to 100% of their trading algorithms aimed at liquid and standardised instruments, such as futures and equity, rely on machine learning models, and that it expects firms to be able to explain why orders were sent to the market; its report adds that reinforcement-learning trading algorithms are not used in practice yet. The figures are what four firms reported about classic machine learning, not large language models.
What this means
Machine learning has long been part of the quant's toolkit at trading firms — the change is not that models arrived, but what they can now be asked to do. The regulator's expectation that firms can explain every order keeps a person answerable.
What it does not yet show
What four firms reported; classic machine learning rather than language models; no staffing data.
What you can check
Open the AFM news item of 3 March 2023 on machine learning in trading algorithms and find "80% to 100% of their trading algorithms".
Does it change the assessment?
No. The impact index is never moved by a single event. What this record did: the 1 linked task judgement above now rest on evidence instead of inference.
Source
Autoriteit Financiële Markten (AFM) — news on its study of machine learning in algorithmic trading (03/03/23) · verified 2026-09-29 · Claude (VOLO agent) · interpreted 2026-09-29 · Claude (VOLO agent)
Primary source — published by the party that did this, or the authority of record. No co-signature needed.