The latest Spotlight Review from the FICC Market Standards Board got me thinking about the waning ethos of “consenting adults” in markets, as well as about a piece of industry infrastructure that could be very useful in monitoring activity in FX markets especially. The Review from FMSB looked at the use of machine learning in […]
Tag: machine learning
The FICC Market Standards Board (FMSB), has published its latest Spotlight Review, which looks at the impact of machine learning on market surveillance functions as part of the broader challenges facing institutions as they establish oversight frameworks. It argues, “Machine learning could lead to fundamental changes in market surveillance given its ability to process complex, […]
The podcast lives up to its name this week with an in-depth look at conditions in fixed income, credit and FX markets as volatility spikes continue in markets generally. After a few observations on bitcoin’s failure to live up to its hype as a hedge in times of turmoil and conditions in the FX market […]
Davide Zilli, client services director at Mind Foundry discusses the importance of built-in ‘explainability’ in AI and machine learning solutions to ensure full transparency and accountability. The financial sector, like many industries today, relies on algorithms to make sense of data, conduct large-scale machine learning (ML) analysis and forecast outcomes. These algorithms are both effective […]
Although the availability of liquidity remains the biggest daily concern for market participants, according to JP Morgan’s annual e-trading survey, the results also suggest growing concerns about the availability of data and an increased focus on data services. The annual survey, now in its fourth year, invites institutional and professional traders to share their views […]
The European Commission has published an update outlining the next steps for its efforts to build trust in AI and machine learning by creating what it terms “a European approach to artificial intelligence”. The plans have attracted criticism from the Center for Data Innovation, a non-profit research institute.
In 2018 the EC established a High-Level Expert Group (HLEG), which was tasked with creating policy and investment recommendations to help the Commission deal with the technological, ethical, legal and socio-economic challenges that can arise from the broader use of AI. Upon launch, the EC said it wanted to strengthen the EU’s competitiveness in this area.
A new Artificial Intelligence/Machine Learning survey launched by Refinitiv has found that while the use of these techniques is pervasive in the financial community, poor quality data impedes their ability to leverage the advantages.
The survey found that 90% of the c-level executives and data scientists surveyed have already deployed machine learning, while all of the c-level participants said it is core to their business strategy.
On the downside, 43% cite poor quality data as the biggest barrier to adoption followed by a lack of data availability (38%).
Singapore-based absolute return global AI fund Ensemble Capital, has gone live with Numerix’s Oneview Asset Management solution for risk and portfolio management.
Founded by former JP Morgan FX option traders Atsuo Ogaki and Damien Loh, Ensemble Capital uses machine learning and deep learning AI algorithms to analyse market data, forecast moves and trade currency and currency options in order to generate uncorrelated returns to traditional asset classes. Ensemble’s proprietary AI models instil discipline and provide a systematic approach to markets.
Scepticism abounds in this week’s In the FICC of It podcast as Colin Lambert and Galen Stops take a look at the latest bank to unveil a digital markets strategy – including all your favourite buzzwords. While Stops believes this is the latest move in what will be a growing trend, our podcasters also wonder whether it’s not really just a rebranding exercise?
They then move into more traditional areas and discuss JP Morgan’s survey on FX market conditions, and while they agree with a lot of the findings, there are one or two areas that raise an eyebrow, not least around internalisation and AI.
AI-generated trading and liquidity are also the forefront as they move on to share their thoughts around the flash crash in Jardine Matheson stock last week in Singapore, including asking the question, what does it mean for market maker programmes and certain order types?
The discussion then moves on to look at the latest FX turnover surveys from the world’s FX committees, with particular attention on three interesting/puzzling (delete as appropriate) elements of the UK report surrounding RMB, NDFs and voice brokers.
The podcast ends on with Lambert praising “the optimism of youth” after Stops highlights what he thinks could be a very important line at the end of the latest document detailing an FX-related fine in the US – in other words, the cynic in him won the day!
The availability of liquidity is the biggest daily issue facing FX traders right now, according to a new survey by JP Morgan.The survey results come from 200 of JP Morgan’s largest Institutional clients, with the majority being FX traders and the rest being rates and commodities traders.In total, 40% of survey respondents cited liquidity availability as the biggest day-to-day issue facing traders in 2019, with 25% instead pointing to efficiency of process, 18% to best execution requirements and 17% to price transparency