How can technology improve regulatory compliance and change how the legal profession works? FINRA’s Machine-Readable Rulebook Initiative offers a clear answer. This blog explores how RegTech in Legal Compliance is helping firms become more efficient, transparent, and connected. We take a closer look through the insights of Alex Khachaturian, Director in FINRA’s Office of Financial Innovation.
Alex Khachaturian leads FINRA’s work on legal innovation and technology. With a strong background in law, global finance, and regulatory strategy, Alex brings a unique perspective on how legal systems can evolve through smart, human-centered tech. His leadership on the Machine-Readable Rulebook Initiative demonstrates how modern tools can simplify complex compliance challenges and deliver lasting impact across the industry with RegTech solutions.
Watch the full conversation with Alex Khachaturian here:
How a Legal Background Drives RegTech Innovation in Compliance
Before joining FINRA, Alex worked in global dispute resolution and served in legal roles at other U.S. regulators. These experiences gave him a deep understanding of how financial markets operate and the real-world challenges companies face when following complex rules.
At FINRA, Alex now leads projects that make those rules easier to access and understand—especially through digital tools. His work focuses on bridging the gap between regulation and innovation, which boosts RegTech compliance strategies.
RegTech in Legal Compliance: Making Legal Texts Searchable and Actionable
The Machine-Readable Rulebook is one of FINRA’s most exciting projects. It takes dense legal text and organizes it into a searchable, digital format. The initiative includes a detailed taxonomy (or classification system) and an API that lets companies link FINRA’s rules to their own internal systems.
This means companies can track rule changes in real time, run automated compliance checks, and find the information they need faster. In short, it helps legal and compliance teams do their jobs better, with fewer delays or errors through effective use of RegTech.
Working Together to Build a Smarter Rulebook
What makes this project even more impressive is how it was built. FINRA worked closely with legal experts, compliance professionals, and regulators from around the world. They gathered feedback, tested ideas, and made sure the final product worked for everyone—from large firms to small teams.
This collaborative process shows how innovation works best when the people using the tools help shape them, making RegTech in legal sectors invaluable.
How Companies Are Using It Today
Firms are already seeing the benefits. They’re using the tool to automate rule tracking, streamline legal research, and reduce manual work. For example, instead of searching through long PDFs, teams can now search specific terms, monitor changes, and update their systems quickly.
Other regulators are taking note too. The success of FINRA’s model is helping shape global conversations about how RegTech in Legal Compliance can improve legal systems everywhere.
Looking Ahead: Openness and Global Collaboration
Alex believes the future of RegTech lies in openness and collaboration. FINRA is working on open-source features and exploring ways to connect this rulebook with related documents and policies. Through partnerships like the Global Financial Innovation Network (GFIN), they’re also helping regulators share ideas and build better systems together.
Conclusion: Making Compliance Clearer, Smarter, and More Accessible
FINRA’s Machine-Readable Rulebook is a powerful example of RegTech in Legal Compliance done right. It simplifies access to rules, supports automation, and helps teams stay compliant in a fast-changing world. Thanks to leaders like Alex Khachaturian and the commitment to innovation at FINRA, regulatory compliance is becoming not just easier—but smarter, faster, and more accessible than ever before.
Watch the full conversation here: Notes to My (Legal) Self: Season 5, Episode 6 (ft. Alex Khachaturian)
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