machine learning

BIS, credit, machine learning

Financial technology (fintech) is taking on an ever more important role in lending decisions. This paper compares the predictive power of credit scoring models based on machine learning techniques, as…

Banca d’Italia’s Franco on data and tech applications for central banks

December 11, 2019

Bank of Italy, Big Data, Central Banks, machine learning

Some data and tech applications that can improve central bank activities include extraction of quantitative information from texts and images, which can be useful for forecasting financial market variables, predicting…

Broadridge launches AI&ML platform for middle/back office

December 3, 2019

artificial intelligence, back office, Broadridge, explainable AI, machine learning, middle office, Tookitaki

Broadridge Financial Solutions announced the launch of Broadridge Data Control Intelligent Automation, a new artificial intelligence (AI) and machine learning (ML) platform built to be deployed across industry-wide reconciliation, matching…

NVIDIA launches software for complex financial analysis

November 19, 2019

artificial intelligence, Big Data, GPUs, IBM, machine learning, Mellanox, Microsoft Azure, Nvidia

NVIDIA introduced Magnum IO, a software package that processes huge amounts of data in minutes instead of hours. The software package was developed in collaboration with IBM and Mellanox, among…

Fund admin spinout Harmonate launches middle office ML data platform

November 18, 2019

data management, Harmonate, machine learning, middle office, NES Financial

Harmonate announced the launch of its data operations platform for funds. Until this launch, its services were only available exclusively through a single fund administrator, NES Financial. The fintech now…

Citadel among early clients for Microsoft Azure’s move on Graphcore IPUs

November 13, 2019

Citadel, Graphcore, hardware acceleration, IPUs, machine learning, Microsoft Azure, NLP

Graphcore announced a collaboration for its Intelligence Processing Units (IPUs) with Microsoft Azure. This is the first time a major public cloud vendor is offering Graphcore IPUs, which are built…

Eurekahedge: AI funds flat, crypto funds up 8.5% in October

November 12, 2019

artificial intelligence, cryptocurrencies, Eurekahedge, hedge funds, machine learning

Fund managers using AI/machine learning strategies registered 0.89% return in October. On a year-to-date basis, the Eurekahedge AI Hedge Fund Index is up 4.16%. The Eurekahedge AI Hedge Fund Index…

BoE research: regulators could use ML for advance warning system

October 9, 2019

Bank of England, banks, machine learning

In this paper, staff researchers from the Bank of England use novel data and machine learning techniques to build an early warning system for UK bank distress. They compare a…

Eurekahedge: AI funds slump 1.2%, crypto funds down 10.6% in September

October 8, 2019

artificial intelligence, cryptocurrencies, Eurekahedge, hedge funds, machine learning

Fund managers using AI/machine learning strategies posted their third consecutive month of losses, as they slumped 1.24% in September. On a year-to-date basis, the Eurekahedge AI Hedge Fund Index is…

NZH: fund managers beating AI-driven strategies so far

October 7, 2019

Aberdeen Standard Investments, AQR, artificial intelligence, hedge funds, machine learning, Panagora

How good is artificial intelligence at managing money? To judge by the recent performance of some AI-driven strategies, it doesn’t look like the robots are going to take over from…

Regtech: when AI watches you, what will the regulator see?

October 1, 2019

Artificial Intelligence, Automation, Regulatory, Technology

AI ethics, artificial intelligence, CDM, data analysis, distributed ledger technologies, DLT, machine learning, predictive analytics, regtech, topstory

Regulators want to disrupt the way they are regulating, and how advanced technologies answer critical compliance questions is going to determine the pace of travel, even while the direction seems…

LiquidityEdge in deal with Mosaic for venue analytics in cloud

September 26, 2019

cloud technology, data analytics, LiquidityEdge, machine learning, Mosaic

Electronic US Treasuries trading venue, LiquidityEdge, signed is licensing J.P Morgan-backed Mosaic Smart Data’s MSX platform to provide analytics across its all-to-all marketplaces. The MSX platform will be cloud-deployed and…

FISL Europe: securities lending deeply divided between optimism and pessimism

September 25, 2019

Europe, FISL, Regulatory

artificial intelligence, CSDR, FISL Paris, machine learning, SFTR, topstory

The Finadium Investors in Securities Lending Europe event yesterday in Paris gathered some 140 attendees across the buy-side, sell-side, regulators and vendors for what was a robust and insightful set…

MATLAB publishes reinforcement learning ebook

September 10, 2019

artificial intelligence, machine learning, MATLAB, reinforcement learning

Reinforcement learning is a type of machine learning that enables the use of artificial intelligence in complex applications, and RL learning algorithms are now beating professionals in games like GO,…

Eurekahedge: AI hedge funds up, crypto funds down in August

September 10, 2019

AI funds, artificial intelligence, crypto funds, cryptocurrencies, Eurekahedge, hedge funds, machine learning

artificial intelligence, machine learning, State Street

Fund managers using AI/machine learning strategies ended the month of August up 1.46%. The Eurekahedge AI Hedge Fund Index was up 4.37% year-to-date. The Eurekahedge AI Hedge Fund Index is…

Market Media: State Street presents on AI in securities lending

September 8, 2019

Josh Galper

News and Notes

State Street and its research arm State Street Associates have collaborated to optimize their securities lending business through the deployment of an internally developed machine learning model. The project’s goal…

Bloomberg: traditional quant money manager shifts to machine learning

September 1, 2019

machine learning, Millburn Ridgefield, money funds

A $7.5 billion money manager with roots almost as old as quant investing itself is going all-in with machine learning. Millburn Ridgefield Corporation placed robots at the very heart of…

BoE: machine learning explainability for default risk analysis

August 13, 2019

AI ethics, Bank of England, machine learning

News and Notes, News and Notes – Fintech

In a Bank of Engalnd staff working paper, researchers propose a framework for addressing the “black box” problem present in some Machine Learning (ML) applications. They implement the approach by…

Northern Trust Develops Machine Learning Based Forecasting Engine to Drive Securities Lending Revenue

August 12, 2019

Josh Galper

machine learning, Northern Trust, Securities Lending

Northern Trust (NTRS) announced today it has developed an innovative pricing engine that utilizes machine learning and advanced statistical techniques to drive revenue growth for clients by more effectively forecasting…

BMLL Technologies on feature generation at scale

August 6, 2019

CLOB, machine learning, Plato

The 2019 Plato Partnership MI3 academic conference was held at the Imperial College London Business School in conjunction with Imperial College and the Centre for Economic and Policy Research (CEPR).…

BPS: reinforcement learning in execution, hedging and arbitrage

July 25, 2019

artificial intelligence, machine learning, reinforcement learning

As a branch of machine learning, reinforcement learning is an approach towards training a machine to find an optimal policy for a stochastic control system, without explicitly building a model…

Fintech weekly deals and partnerships roundup

FT: Vanguard and Ant Financial team up for mutual funds adoption in China Pennsylvania-based Vanguard has just agreed an investment advisory joint venture with Ant, a subsidiary of the Chinese…

O’Reilly: automatic data cleaning deployed by financial services

June 25, 2019

data management, machine learning

There is an emerging class of technologies aimed squarely at the need for quality training data as models are increasingly becoming commodities. An O’Reilly survey results found that a lack…

Alibaba’s CVaaS: machines advance in reading and writing code

June 23, 2019

AI, Alibaba, AutoML, Big Data, blockchain, Bynet Expo, cloud, computer vision, machine learning

Last week, we stopped by ICT event Bynet Expo in Tel Aviv to see what’s being said about the AI, big data and blockchain spaces. Alibaba’s “Computer Vision as a…

Fintech trends with implications for securities finance and collateral (Premium)

June 20, 2019

Josh Galper

Collateral Management, Regulatory, Technology

Big Data, machine learning, Quantum Computing, standardization, topstory

The fintech space continues to grow at a rapid clip, with innovations in machine learning, standardization, big data and quantum computing. We review several recent trends for their potential impacts…

PanAgora: machine learning’s promise and pitfalls

June 18, 2019

AI ethics, CAIA, China, machine learning, natural language processing, Panagora

When CAIA (Chartered Alternative Investment Analyst Association) conducted a survey on the use of machine learning in the investment process, the vast majority of respondents proved to be in “raising…

Fintech weekly deals and partnerships roundup

ECB picks SIA And Colt for Eurosystem’s payments, securities and collateral infrastructures SIA, in partnership with Colt Technology Services, was awarded a 10-year license from a tender commissioned by the…

Regtech at crossroads: are more prescriptive vendor standards coming?

June 17, 2019

artificial intelligence, ASIC, blockchain, FCA, ICMA, machine learning, regtech

It’s becoming apparent that technology alone isn’t the answer for regulatory compliance, so what is? We spoke with JWG Group after its annual RegTech Capital Markets Conference to find out…

AQR: machine learning evolutionary, not revolutionary

June 12, 2019

AQR, asset managers, machine learning, portfolio managers

Can machine learning be helpful to asset management – and if so, how? Asset markets fundamentally differ from many of the environments in which machine learning has enjoyed success, and…

Fintech weekly deals and partnerships roundup

HSBC partners with Canada’s Element AI in GBM division HSBC has signed a collaboration agreement with artificial intelligence (AI) software company Element AI to help the bank develop the capability…

Highlights from BIS’ 970-page tome on big data for central banks

June 4, 2019

artificial intelligence, Bank for International Settlements, Big Data, Central Banks, machine learning

Big Data, Technology

Getting the most out of big data and the advanced technologies used to make sense of it is no trivial task for central banks, and in a recently released report,…

Cyber, AI, ESG, fintech among top 10 fears for risk managers

June 3, 2019

artificial intelligence, bigtech, cyber resilience, cyber risk, cybersecurity, ESG, fintech, machine learning, Nedbank, risk management, RiskMinds, Standard Chartered

An article published by RiskMinds outlined the top 10 fears in risk management, and the list reveals many familiar trends that Fintech Capital Markets is seeing as well. Continue reading

Cuemacro: machine learning in focus at QuantMinds in Vienna

June 3, 2019

Uncategorized

Cuemacro, machine learning, QuantMinds, Saeed Amen

The headline panel of the event had some of the best known quants in the industry, Damiano Brigo (Imperial College), John Hull (University of Toronot), Peter Carr (NYU Tandon) and…

ISF: emerging tech in Canada’s seclending industry

June 1, 2019

Canada, CASLA, distributed ledger technology, machine learning, RBC, Securities Lending

In an interview with Global Investor, Donato D’Eramo, president at the Canadian Securities Lending Association (CASLA) and managing director and global head, securities finance at RBC Investor & Treasury Services,…

Quant Insight: what machine learning says about trading Brexit

May 25, 2019

Brexit, machine learning, Quant Insight

In a practical example of using machine learning in investing, Quant Insight presented an analysis in the aftermath of Brexit. Quant Insight is a London based quant analytics firm that…

Machine learning in pricing models raises questions for insurers

May 15, 2019

artificial intelligence, Bank of England, David Rule, insurance firms, machine learning, model risk, pricing models

Excerpts from speech by David Rule, executive director of Insurance Supervision Association of British Insurers Prudential Regulation Seminar, 14 May 2019 For many pricing models, new technology is bringing rapid…

MAS’ Menon details use cases of advanced tech and ASEAN network developments

May 15, 2019

APIs, ASEAN, AXA, BBVA, Blackrock, BNP Paribas, fintech, J.P. Morgan, machine learning, MAS, Mitsubishi UFJ, OCBC, Ping An, Quantum Computing, Singapore, Societe Generale

Excerpts from speech by Ravi Menon, managing director of the Monetary Authority of Singapore, at the Bank of France Lecture, Paris, 14 May 2019. Banks are using technology to resolve…

FISL NYC 2019: what seclending players want from data and tech (Premium)

May 14, 2019

Artificial Intelligence, FISL, Securities Lending, Technology

artificial intelligence, asset managers, automation, Custodians, data analytics, hedge funds, machine learning, SFTR, topstory, vendors

As in many markets, the securities lending industry is tackling challenges in advancing technologies for investment and profitability, said panelists at Finadium’s annual Investors in Securities Lending conference. One panelist…

FISL NYC 2019: prioritizing tech spend in securities lending

May 7, 2019

Automation, Securities Lending, Technology

artificial intelligence, automation, Custodians, FISL NYC 2019, machine learning, topstory, vendors

There’s never enough technology, so the SecFin industry needs to be selective about how and where funds are dedicated, said a panel of custodians and vendors at FISL NYC 2019.…

Reuters: J.P. Morgan applies machine learning to FX trading

May 1, 2019

FX, J.P. Morgan, machine learning

J.P. Morgan has started applying tech that enables machine-trading programs to learn from previous trades and search for the most profitable way to execute them. The broker told Reuters its…

Interview: using deep neural networks for derivatives pricing problems (Premium)

April 26, 2019

Alan Turing Institute, artificial intelligence, Blanka Horvath, deep neural networks, derivatives, Imperial College, machine learning, topstory, volatility

A recent academic paper showed how deep neural networks can be applied to derivative pricing problems, and in a way that appeases regulatory concerns about the use of such advanced…

Financial ML further advanced than expected, N. America and buy-side lead

April 23, 2019

alternative data, buy-side, machine learning, Refinitiv

A survey from Refinitiv asked buy- and sell-side firms across North America, Europe and Asia about their levels of machine learning use and deployment. Refinitiv is the former financial risk…

Eurekahedge: AI/ML funds flat, crypto funds outperforming bitcoin

April 17, 2019

artificial intelligence, crypto fund, cryptocurrencies, Eurekahedge, hedge funds, machine learning

Fund managers using AI/machine learning strategies gained 2.59% in March, bringing their year-to-date returns to 3.93%. Quant strategies continued to fall out of investors’ favor, with the CTA/managed futures mandate…

Applying deep neural networks to derivative pricing problems

April 14, 2019

deep neural networks, derivatives, Ecole Polytechnique, ETH Zurich, Imperial College London, machine learning, risk models, volatility

In an academic paper, Blanka Horvath from the Department of Mathematics at ETH Zurich, Aitor Muguruza from Imperial College London and Mehdi Tomas from Ecole Polytechnique present a consistent neural…

CFO survey shows automation and analytics tops investment priorities

April 12, 2019

artificial intelligence, CFOs, data analytics, Grant Thornton, Intelligent Automation, machine learning, OCR, RPA

Because finance leaders face a burgeoning list of emerging technologies, Grant Thornton set out to understand the top priorities that are shaping their digital strategies. Its 2019 CFO survey revealed…

Synced: quantum-enhanced feature space for ML

April 12, 2019

Big Data, machine learning, Quantum Computing

Kernel methods for machine learning are widely used in pattern recognition and classification tasks. However, when a feature space becomes too large, computation of the kernel function becomes prohibitively expensive…

Fintech weekly deals and partnerships round-up

Torstone acquires cloud compliance tech company Torstone Technology, a provider of post-trade securities and derivatives processing technology, has announced that it’s agreed to acquire Percentile, a provider of real-time, cloud-based…

BIS research: bigtech and the changing structure of financial intermediation

April 8, 2019

News and Notes, News and Notes – Fintech

Bank for International Settlements, bigtech, credit, data analysis, fintech, machine learning, Mercado Libre

In a BIS working paper, researchers from the Financial Stability Board, Bank for International Settlements, Graduate Institute (Geneva) and Argentina’s bigtech firm Mercado Libre consider the drivers and implications of…

Cyberthreat report finds machine learning top strategy for too much data

March 26, 2019

Big Data, cybersecurity, IT survey, machine learning