US SEC adopts new cyber rule, unveils brokerage AI proposal

FILE PHOTO: Signage is seen at the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) -Wall Street's top regulator on Wednesday adopted new rules requiring publicly traded companies to disclose hacking incidents, a measure officials said was to help the investing public contend with the mounting cost and frequency of cyber attacks.

On a party-line vote, the five-member U.S. Securities and Exchange Commission also voted to propose requiring broker-dealers to address conflicts of interest in the use of artificial intelligence in trading, a reform partly influenced by the events of the 2021 "meme stock" rally when officials found robo-advisers and brokers used AI and game-like features to drive user behavior.