arXiv:2608. 19974v1 Announce Type: new Abstract: LLM agents in financial markets may cite rules yet still submit orders that violate executable constraints or misread surveillance evidence.
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AStockArena is a real‑time decision‑auditing benchmark for continuous trading in China’s A‑share market, evaluating 13 open‑ and closed‑source models over 3,198 sequential decisions. The benchmark reconstructs actual account actions by aligning reports, trade requests, execution responses, and account states, then audits them with eight checks covering execution traceability, evidence sufficiency, and financial meta‑awareness. Across 1,070 trading points, 72.99% show at least one audit gap, with evidence gaps most common, and historical replay demonstrates that flagged trades significantly affect portfolio outcomes.
The paper introduces PACT, a benchmark designed to evaluate how well enterprise AI assistants follow compliance rules when faced with various pressures such as persistent users or hurried managers. PACT covers twelve regulated domains and forty-eight realistic multi‑turn scenarios, pairing each rule with a shortcut that violates it and applying different pressures across wording and system‑prompt modes. Using PACT, the authors profile six metrics of compliance and aggregate them into a PACTScore, revealing significant variability among 22 LLM models and that even top performers misapply rules 6–10% of the time, with user pressure increasing violations by 65% on average.
The paper introduces a compliance-first AI architecture for regulated finance, treating regulation as an orientation layer rather than a rigid rule set. It uses a regulatory intent matrix and a governed policy compiler to translate regulatory requirements into concrete prohibitions, obligations, and runtime budgets, while maintaining proportional committee activation and supervisory oversight. Evidence and decisions are recorded on a permissioned DAG with deterministic timestamps, enabling replay, provenance checks, and clear attribution of failures, and clause-level legal indexing ensures portability across the DACH region and the EU.
The paper investigates how procedural traces—detailed step-by-step accounts of a language model’s reasoning—affect the decision-making of LLM overseers tasked with auditing another model’s outputs. Using signal detection theory, the authors evaluated five overseers on 19 compliance tasks, finding that while error detection remains high when disconfirming evidence is always visible, more elaborate traces shift the decision criterion toward rejection, leading to increased false alarms. The study also shows that providing option labels reduces the stated inability to link evidence to options, yet some overseers still exhibit residual rejection of correct work that grows with trace detail.
Sequential trading agents produce decisions, orders, execution receipts, account states, and reports that need not agree, even when the final portfolio value is correctly computed. We present FIDES-Li...
arXiv:2608. 16852v1 Announce Type: new Abstract: Regulatory compliance monitoring in deployed language models is increasingly implemented as a legal and audit control, checking model outputs against written rules spanning data protection, healthcare, financial regulation, and platform policy.