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| 5 Jun 2026 | |
| Reports |
Capital flows into Private Markets have accelerated sharply. Operational practices built for smaller scale now struggle under volume, complexity, and participant diversity. The result is not just inefficiency yet systemic risk, driven by incomplete data, delayed reporting, and absence of shared standards. Artificial Intelligence (AI) compounds this challenge. Financial institutions deploy AI tools for reporting, risk analysis, compliance, and fraud detection on data that is inconsistent, often missing, and hard to verify. Poor data quality does not slow AI deployment; it amplifies risk at scale. Rising opacity, operational risk, and new retail and individual investor types thrust into this marketplace segment at a time when AI, real-time, and digital payments magnify the consequences of weak data foundations.
The problem is documented. The precedent is proven via OTC Derivatives. The policy tools already exist. What is required is deliberate action from policymakers from Congress and the Executive Branch to ensure that Private Markets operate with data standards, transparency, and safeguards aligned with their systemic importance.
Prepared by DIACSUS Advisory & Consulting
Thomas Dunlap | Kirke Cushing
