BNP Paribas Securities Services is implementing Smart Chaser, a trade matching tool using artificial intelligence and predictive analysis, to further automate the trade processing services it provides to investment managers.
Trade matching – the comparison of trade details between the client and its broker – is a key part of the middle office service provided by BNP Paribas to its investment manager clients. Matching must be performed in a timely manner or there is a risk a trade may require manual intervention or, in some cases, fail. Intervention or failure is particularly likely if a trade is not settled on the day of execution.
Using machine learning and predictive analysis, Smart Chaser will predict the likelihood that a trade will not “match” automatically and will therefore require manual intervention. With Smart Chaser, BNP Paribas aims to be able to predict the likelihood of a delayed “trade matching”, ascertain the contributors to the delay and suggest a pre-designed email template to be sent by the middle office operational team to relevant clients.