The Lawyer Valerio Maria Pennetta, already recognized for his commitment and expertise in corporate law and financial markets, he was admitted to the prestigious PhD in “Business & Law – Institutions and business: value, rules and social responsibility” (XL cycle) at the University of BresciaThe research project that earned him admission addresses a topic of extraordinary topicality and relevance: “Intelligent Market Abuse: New Forms of Civil Liability for Offences Committed by Artificial Intelligence”.
The project of the lawyer Pennetta aims to investigate the impact of algorithms on the regulation of disclosure of privileged information, with reference to art. 7 of EU Regulation no. 596/2014 (Market Abuse Regulation, MAR). Privileged information, increasingly managed by advanced algorithms, is at the center of an automation process that raises new questions in terms of legal liability. The research is divided into three macro-themes:
- Evolution of the notion of privileged information. The analysis starts from the update of the concept of privileged information, in light of the technological developments that characterize the current context. AI algorithms are able to collect, process and analyze data from sources that, until a few years ago, were outside the regulation on the matter. Social media such as LinkedIn, Instagram and X (formerly Twitter), together with online newspapers, now represent relevant channels for the collection of information that, thanks to the computing power of AI, take on a specific weight in the prediction of market trends. The example of highway transit data used to anticipate the performance of stocks in the sector is emblematic of this transformation.
- Uses of AI in information management. Another crucial aspect of the research concerns the practical application of AI systems in information search and management. It will be explored whether and to what extent such systems can be subjected to the provisions of the Market Abuse Regulation, in particular when the information processed can be classified as “price sensitive”.
- Civil liability and consequences for issuers. Finally, the research will focus on the legal consequences of failure to comply with the rules set out in the MAR. Particular attention will be paid to the civil liability of issuers towards third parties and shareholders. The growing decision-making autonomy of algorithms raises questions about whether the crimes can be traced back to human or corporate operators who use these tools.
The study of the legal implications of Artificial Intelligence in financial markets represents a still little explored but increasingly important area, especially considering the central role that algorithms are assuming in the management of sensitive information.
The entire academic and professional community awaits with interest the results of this research, which promises to shed new light on one of the most complex and fascinating aspects of contemporary law.
