Northern Trust (NTRS) announced it’s enhanced its Foreign Exchange (FX) currency management solutions with machine learning models designed to enable greater oversight of thousands of daily data points and help reduce risk throughout the currency management lifecycle. The solution has been developed in conjunction with Northern Trust’s strategic partner Lumint Corporation.
The advanced technology utilized by the Robotic Oversight System (ROSY) for Northern Trust, systematically scans newly arriving, anonymized data to identify anomalies across multi-dimensional data sets. It is built on machine learning models developed by Lumint using a cloud platform that allows for highly efficient data processing.
Andy Lemon, head of currency management at Northern Trust, said in a statement: “In a data-intensive business, ROSY acts like an additional member of the team working around the clock to find and flag anomalies. The use of machine learning to detect data outliers enables us to provide increasingly robust and intuitive solutions to enhance our oversight and risk management, which can be particularly important in volatile markets.”
Alex Dunegan, CEO of Lumint, said in a statement: “Northern Trust’s deployment of ROSY amplifies the scalability of its already highly automated currency hedging operation; especially for the more sophisticated products such as look-through hedging offered to its global clients.”
Northern Trust announced a strategic partnership with Lumint in 2018 to drive innovation in currency hedging, including comprehensive transparency reporting and analytics to meet the evolving needs of asset owners and asset managers.