Seán Sherlock (Cork East, Labour)
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325.To ask the Minister for Finance the engagement he had on the recent stock market crisis; and if any engagement is being held with his officials on the use of artificial intelligence in the Irish stock exchange.[34264/24]

Jack Chambers (Dublin West, Fianna Fail)
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As the Deputy will be aware, while I have no specific role regarding the performance of the Irish, or international, stock markets or the means (including involving the use of artificial intelligence) by which trading takes place on stock markets. That said, I am mindful of the recent stock price movements during the early August trading period and the various market sentiments that have been expressed regarding these developments and potential impacts on the wider macroeconomic situation.

As for the use of artificial intelligence (AI) in the Irish Stock Exchange, the Deputy will be aware that the market operator of the Exchange, Euronext Dublin, is regulated by the Central Bank of Ireland. The regulatory framework for stock exchanges and for trading in financial instruments is EU based, with the Markets in Financial Instruments Directive (or MiFID) governing the authorisation and operation of stock exchanges and investment firms.

I am informed by my officials and the Central Bank of Ireland that the European Securities and Markets Authority (ESMA) has recently issued a statement that detailed that it expected all investment firms employing the use of AI to comply to MiFID requirements when providing services to retail clients. This statement clarifies that ESMA and national competent authorities (NCAs) will keep monitoring the evolution of AI in investment services and of the relevant EU legal framework on AI to determine if further action is needed in this area.

I am further informed by the Central Bank of Ireland that it is developing policy work and supervisory expectations related to the use of AI in financial services, including preparing for the implementation of the EU’s Artificial Intelligence Act.

Finally, it may also interest the Deputy that both my Department and the Department of Enterprise, Trade and Employment published some work that officials have done regarding AI more generally and the relevant document can be found on my Department's website.