Financial Markets
Protecting Systemically Critical Financial Infrastructure from Emerging Technology Risk
Fidelitas Defense delivers Systems Assurance, Technology Diligence, Supply Chain, Foreign Ownership, Control, or Influence (FOCI), Cyber, and Regulatory Risk Management for AI-enabled Robotics and Autonomous Systems in Financial Markets. Our Solutions align with global standards and U.S. regulatory guidance, including U.S. Interagency Third-Party Risk Management Guidance (Federal Reserve, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, 2023), helping organizations manage risks across complex technology dependencies, foreign ownership exposure, and autonomous systems that underpin market stability.
Interagency Guidance on Third-Party Relationships: Risk Management | FDIC.gov
We help Clearinghouses, Central Banks, Global Systemically Important Banks (G-SIBs), Exchanges, Asset Managers, and Payment networks understand and mitigate operational, cyber, and regulatory risks across their AI-enabled and autonomous infrastructure.
Financial Infrastructure Is Becoming Autonomous
Modern Financial Markets are no longer just IT systems — they are AI-driven, algorithmically governed, and latency-sensitive infrastructure.
Systemically important Financial Institutions designated under the Dodd-Frank Act by the Financial Stability Oversight Council must manage risks that extend beyond traditional IT:
· Autonomous trading and risk engines
· AI-driven surveillance and compliance systems
· Vendor and subcontractor dependencies, including offshore development
· Software and hardware supply chains, including open-source components
· Foreign Ownership, Control, or Influence (FOCI) risk
Fidelitas Defense provides clarity and assurance across all these emerging risk domains.
Regulatory and Supervisory Imperative
U.S. Financial Regulatory frameworks require Financial Institutions to manage:
· Third-party and fourth-party risk
· Geographic and jurisdictional exposure
· Sanctions and foreign ownership/control risk
· Operational risk across mission-critical systems
Key regulatory guidance includes:
· Interagency Third-Party Risk Management Guidance (Fed, OCC, FDIC, 2023)
· SEC Regulation SCI & Rule 17Ad-22 (Clearing Agencies)
· Federal Reserve Regulation HH (SIFMUs)
Effective compliance now demands visibility into AI, autonomous systems, and the full technology supply chain — which is precisely where Fidelitas Defense excels.
Who We Serve - Supporting the Most Systemically Important Financial Institutions
Fidelitas Defense partners with institutions where operational resilience is mission-critical. We categorize clients into tiers reflecting regulatory expectations and technology risk exposure.
Tier 1 – Systemically Critical Infrastructure: This includes clearinghouses, central banks, and globally systemic banks. These institutions rely on AI-driven and autonomous settlement systems, as well as autonomous risk engines, making Supply Chain transparency and Foreign Ownership, Control, or Influence (FOCI) assessment critical to maintaining operational and systemic resilience.
Tier 2 – Market Infrastructure & Exchanges: This tier covers stock exchanges, futures and derivatives markets, and major payment networks. Emerging technology risks include high-speed trading systems, autonomous market surveillance, and AI-driven trading operations, as well as vendor or subcontractor dependencies, including exposure to high-risk jurisdictions.
Tier 3 – Large Asset Managers, Retirement Funds, and Investment Transactions: This tier includes large asset managers and hedge funds, as well as VC, private equity, and M&A transactions involving technology-intensive portfolio companies. These organizations leverage automated and autonomous portfolio management, AI-driven trading models, and cloud-based infrastructures. Critical risk areas include Supply Chain diligence, FOCI and sanctions exposure, and Regulatory Risk Management for board and supervisory reporting. In addition, Fidelitas Defense provides technology diligence for VC, Private Equity, and M&A investors, assessing autonomous systems, AI operations, vendor dependencies, and geopolitical exposure to ensure informed, risk-aware investment decisions.
Tier 4 – Emerging & Specialized Institutions: Smaller hedge funds, FinTechs, and niche market utilities fall into this tier. Their emerging autonomous systems and AI operations may lack formal governance, making tailored Systems Assurance, Supply Chain and FOCI risk assessment, and Cyber and Regulatory Risk Management essential.