In other FinTech briefs, Bloomberg will provide entity help to BGC Partners while Beta Capital Wealth Management is moving toward self-clearing.
A.I. Tool to Bolster Decision-Making Rather Than Replace Traders
Santiago Braje, global head, credit trading, ING
With a Samurai sword in mind, ING is using an artificial intelligence (A.I.) tool, dubbed Katana, “to help bond traders make faster and sharper pricing decisions,” according to officials at the firm.
The new tool has not been created to replace human traders but to “enhance cooperation between man and machine,” officials said. “Named after the ultra-sharp Samurai sword, Katana uses predictive analytics to help traders decide what price to quote when buying and selling bonds for their clients, based on historic and real-time data.”
The Katana system works by building upon “the history of hundreds of thousands of trades and translates this into a prediction or suggested decision for the trader,” officials say.
“By organizing and displaying these predictions alongside relevant data in a way that can be intuitively absorbed by the trader, it is uniquely designed to complement the trader’s own decision-making, not replace the trader,” according to ING.
“We have seen some examples of applied AI on the trading floor before, but in most cases they have a narrow focus on automation,” says Santiago Braje, global head of Credit Trading, in a prepared statement. “This restricts them to liquid asset classes where the trader is replaced by a machine,” Braje says.
“With Katana, AI is applied to enhance the traders’ decision-making abilities, allowing them to use their natural intuition and expertise in the most effective way. This is a powerful combination,” Braje says. “Our traders stay fully in control, but are now better equipped to give the best quote to our clients every time.”
ING’s Financial Markets Global Credit Trading team in London and the Wholesale Banking Advanced Analytics team developed Katana, officials say.
BGC Partners Embraces Bloomberg Entity Exchange
Global brokerage BGC Partners has decided to use the Bloomberg Entity Exchange to assist the firm’s clients with E.U.-regulated entities that need to be compliant with MiFID II client repapering and rulebook disclosure rules, officials say.
The Bloomberg platform will help BGC clients with know your customer (KYC) entity data management services that will support MiFID II client data collection and new contract management requirements, officials say.
The Bloomberg move follows BGC’s bid to operate Organized Trading Facilities (OTFs) and Multilateral Trading Facilities (MTFs) under the MiFID II regime, officials say. “As such, BGC is required to collect information related to venue participants and related transaction activity. MiFID II obliges brokers like BGC to collect and maintain more detailed information about their clients, amend business terms and conditions and disclose rulebook information about the trading venues they operate,” officials add.
“New regulations have obliged brokers to reconsider how they collect client information,” says Dan Matthies, head of Bloomberg’s Entity Exchange business, in a statement. “While this creates a short-term burden on compliance and client teams, it also offers the opportunity to put a new process in place to drive better client service and risk management going forward.”
Beta Capital Wealth Management to Use Broadridge for Self-Clearing
Miami-based broker-dealer Beta Capital Wealth Management is turning to Broadridge Financial Services for front-to-back-office technology and operations solutions that support the firm’s move to self-clearing,
Beta, owned by Crèdit Andorrà Financial Group, offers wealth management, trading and execution solutions to U.S. and Latin American clients, officials say.
“After careful review of the marketplace, it became clear that the optimal choice for Beta Capital Wealth Management’s targeted growth was Broadridge,” says Noelia Povedano, CEO of Beta Capital Securities, in a statement. The firm will deploy Broadridge’s wealth management solution set, back office systems and professional services. “We are delighted to utilize the Broadridge wealth management platform as we transform our business,” Povedano says.
“Historically, the self-clearing landscape has been dominated by large, global players who have the capital, expertise and technology to support the initiative,” according to Broadridge officials. “The unique combination of Broadridge technology and managed services will fully support the growth and cost objectives that Beta desires.”
Beta will use Broadridge’s professional services as guidance and consultative support “through the various regulatory and integration processes,” officials add.
“We are excited to be chosen by Beta Capital for their end-to-end wealth technology and operations needs,” says Steve Brown, managing director, wealth management, at Broadridge, in a statement. “By selecting Broadridge, Beta Capital will be well positioned for growth in new markets and have full control of their future success.”
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