Trading


Artificial Intelligence in Capital Markets: a tale of opportunities and Fintech collaborations

#artificialintelligence

According to another research firm, Opimas Research, in 2017, financial firms alone will spend more than USD 1.5 billion on artificial intelligence (AI) related technologies and by 2021, USD 2.8 billion, representing an increase of a whopping 75%. Thanks to these macroeconomic factors, Capital Market firms are increasingly looking towards advanced technology solutions like AI to increase employee efficiency and aid faster decision making. Even as the Capital Market firms explore more advanced use cases for AI, a few areas that we are seeing pilot adoptions include speech recognition, machine learning platforms and virtual agents. Capital Market firms, much like banks, are partnering with Fintech players for things like AI driven post-trade processing platforms and advanced analytics.


Machine-learning promises to shake up large swathes of finance

#artificialintelligence

A subset of artificial intelligence (AI) that excels at finding patterns and making predictions, it used to be the preserve of technology firms. Intelligent Voice, a British firm, sells its machine-learning-driven speech-transcription tool to large banks to monitor traders' phone calls for signs of wrongdoing, such as insider trading. Other specialists, like Xcelerit or Kinetica, offer banks and investment firms near-real-time tracking of their risk exposures, allowing them to monitor their capital requirements at all times. Similarly, says Mr Masci, a machine-learning algorithm ought to beat conventional trading strategies based on rules set by humans.


Baidu Whiz Must Outsmart Google at Artificial Intelligence -- WSJ

#artificialintelligence

The company's core search engine business once made it the Google of China, but it has been beset by bad decisions, scandals and falling profits, leaving its future uncertain. After running Microsoft's Office and search groups, Mr. Lu was a candidate for the CEO job, which went to his onetime subordinate, Satya Nadella, people familiar with the matter say. In the past year, share prices of Tencent and Alibaba rose by 71% and 51%. E-commerce ad revenue surpassed search-engine ads in China in 2016, according to research firm iResearch.


Smith & Williamson to launch artificial intelligence fund

#artificialintelligence

Independent financial services group Smith & Williamson is launching an investment fund looking to tap into the rise of robots and artificial intelligence (AI). The Smith & Williamson Artificial Intelligence fund will be co-run by Chris Ford and Tim Day, who joined the group's asset management arm in 2015 from Pictet, where they headed its global equity team. 'The Smith & Williamson Artificial Intelligence fund will seek to fully capture this opportunity by gaining exposure to the companies around the world which derive significant competitive advantages from their superior ability to harness AI.' The launch comes hot on the heels of Allianz Global Investors bringing a Global Artificial Intelligence Equity fund to market last month, which it claimed was the first dedicated AI fund to be launched in Europe.


How my research in AI put my dad out of a job – Snips Blog – Medium

#artificialintelligence

Fast forward to 2017, and this type of trading represents over 90% in some cases, almost completely replacing human traders in big banks. Today, most people doing AI do Machine Learning, and most people doing Machine Learning do Deep Learning, so you would be forgiven for using them interchangeably . For example, a medical doctor's job is to collect data about the patient, make a diagnosis, find an appropriate treatment, and then help the patient get better by engaging on an emotional level. Most likely, common illnesses will be treated by an AI doctor, while human doctors will figure out how to handle complex cases (requiring general intelligence), and helping patients recover (requiring emotional intelligence).


Rise of the algorithms - Business News The Star Online

#artificialintelligence

Such softwares reduce or totally eliminate the need for human intervention in the investing or trading process that is present in the traditional human discretional approach through fund managers and brokers. CPG is one of the few quant fund operators in Singapore today with total assets under management at slightly below US$100mil (RM434mil). Locally, BIMB Investment Management Bhd, which is a unit of Bank Islam Malaysia Bhd, recently launched its fund using AI technology. Whether or not quant funds outperform the traditional discretionary approach of investing is still very much open to debate.


Why Robots Need Adult Supervision

#artificialintelligence

In order to ensure that the biggest, most scalable social media platform -- one whose operations, recommendations, and advertising placements are dictated by software and algorithms -- operate more efficiently, the company will hire thousands of human workers who each possess significantly lower bandwidth than an iPhone. As technology develops, we've seen a lot of discussion about what the future of work will be: computers substituting for humans, or computers working alongside humans, or, as MIT engineer and biophysicist Hugh Herr prophesizes, computers working as parts of humans. Yes, letting software monitor content and respond to comments can allow your platform to scale rapidly. So whether it is powerful hedge funds that rely on algorithmic trading or the so-called robo-advisors that let algorithms dictate asset allocation, the industry is increasingly comfortable with letting software run the show.


We're Seeing How Far We Can Push Artificial Intelligence In Asset Management - BI Insight - Business Intelligence

#artificialintelligence

Artificial intelligence (AI) will have a significant and complementary role to play in asset management going forward, according to investing guru, Man Group's Pierre Lagrange. "It's all about seeing how far we can push the machine in terms of taking some of the decision-making on the investment side. There are so many variables that people are looking at to be aggregated into the decision-making so the more you can use a machine, the better it is," explained Lagrange, speaking to CNBC on Tuesday. Lagrange co-founded discretionary asset fund manager GLG in 1995 and stayed with the firm following its 2010 acquisition for $1.6 billion by the world's largest publicly traded hedge fund, Man Group.


Sumitomo Mitsui gets all chatty with AI » Banking Technology

#artificialintelligence

Sumitomo Mitsui Financial Group (SMFG) and its partners have unveiled an automated chat service using artificial intelligence (AI) to offer guidance to customers in Japan. SMFG is working with SMBC Nikko Securities, NTT Communications, with support from Accenture Japan, and their service will become available on 25 May 2017 at SMBC's contact centre to improve its LINE-based inquiry service. Once launched this month, the AI chatbot will provide guidance on ways to open accounts as well as on initial public offerings (IPO) and NISA (a type of Japanese individual savings account). Cotoha can understand customer inquiries and provide responses by asking questions about missing information.


Darwin visits Wall Street

MIT News

"When you and I are making investment decisions independently, we'll exhibit different behavior," Lo says. In so doing, Lo would like to resolve the divergence between the realities of human behavior and the long-standing "efficient markets hypothesis" (EMH) of finance with his own "adaptive markets hypothesis," to account for the dynamics of markets -- and to provide new regulatory mechanisms to better ward off damaging crashes. That's because it is very hard for individual investors or fund managers to beat indexes over an extended period of time. And second, Lo's adaptive markets hypothesis does not hold that people will constantly be finding the best possible investments.