AI Tool Helps Fix Faulty Trades Amid Shift to Faster Settlement Times
As the financial industry grapples with the shift to shorter settlement times, banks and broker-dealers will soon have a new artificial-intelligence tool to fix and prevent trades that go awry during the settlement process.
Broadridge Financial Solutions Inc. is rolling out OpsGPT, a chat-bot that uses generative AI and large language model technology to analyze and resolve operational issues such as failed trades, and offer insight on the cause of the issue and suggestions for how to resolve it and prevent it from happening again. The product was developed to help firms deal with added stress and costs as the market moves to a so-called T 1 requirement later this year, speeding up settlement times for securities trades to one day from two.
“The need for operational efficiencies in areas like real-time-fails resolution is amplified in a T 1 world,” Vijay Mayadas, president of capital markets at Broadridge, said in an interview. The new tool helps with that transition by allowing users to “understand the deeper reasons of why a trade failed and being preemptive about it,” he said.
The world’s biggest financial firms have been experimenting more with artificial intelligence, spurred by the promise that it will help them boost staffers’ productivity and cut costs.
The new tool, which is in a trial period with a handful of Broadridge clients, can also be used in multiple languages, including Japanese, leveraging the power of large language models, Mayadas said. New York-based Broadridge integrated the technology on its existing, post-trade system, which clears and settles roughly $10 trillion in trades a day.
OpsGPT can identify a trade and figure out how positions are linked using Broadridge data across asset classes and geographies. It then recommends solutions for failed trades to avoid repeating the same error.
“Some banks could have billions of outstanding, failed trades on a daily basis,” Mayadas said. “If you can reduce that amount by even 10% to 15%, you can save millions of dollars.”
The new offering adds to an earlier Broadridge AI application that caters to the fixed-income market. BondGPT, launched in 2023, offers a chat function that uses data to answer bond-related questions and helps investors identify corporate bonds that fit their investing thesis. OpsGPT is expected to go live in two to three months, according to Mayadas.
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As the financial industry grapples with the shift to shorter settlement times, banks and broker-dealers will soon have a new artificial-intelligence tool to fix and prevent trades that go awry during the settlement process.
Broadridge Financial Solutions Inc. is rolling out OpsGPT, a chat-bot that uses generative AI and large language model technology to analyze and resolve operational issues such as failed trades, and offer insight on the cause of the issue and suggestions for how to resolve it and prevent it from happening again. The product was developed to help firms deal with added stress and costs as the market moves to a so-called T 1 requirement later this year, speeding up settlement times for securities trades to one day from two.
“The need for operational efficiencies in areas like real-time-fails resolution is amplified in a T 1 world,” Vijay Mayadas, president of capital markets at Broadridge, said in an interview. The new tool helps with that transition by allowing users to “understand the deeper reasons of why a trade failed and being preemptive about it,” he said.
The world’s biggest financial firms have been experimenting more with artificial intelligence, spurred by the promise that it will help them boost staffers’ productivity and cut costs.
The new tool, which is in a trial period with a handful of Broadridge clients, can also be used in multiple languages, including Japanese, leveraging the power of large language models, Mayadas said. New York-based Broadridge integrated the technology on its existing, post-trade system, which clears and settles roughly $10 trillion in trades a day.
OpsGPT can identify a trade and figure out how positions are linked using Broadridge data across asset classes and geographies. It then recommends solutions for failed trades to avoid repeating the same error.
“Some banks could have billions of outstanding, failed trades on a daily basis,” Mayadas said. “If you can reduce that amount by even 10% to 15%, you can save millions of dollars.”
The new offering adds to an earlier Broadridge AI application that caters to the fixed-income market. BondGPT, launched in 2023, offers a chat function that uses data to answer bond-related questions and helps investors identify corporate bonds that fit their investing thesis. OpsGPT is expected to go live in two to three months, according to Mayadas.
Also, read these top stories:
The worst of CES 2024! The worst gadgets could harm us or our society and planet in such “innovatively bad” ways that a panel of self-described dystopia experts has judged them “Worst in Show.” Some interesting details in this article. Check it out here.
Trust in AI? Not even if your eyes tell you to! They are lying. Technology will only get us so far in dealing with AI-generated photos, of which there will be many. Find out what we must become here.
The founder-CEOs are feeling the heat! What happened to OpenAI’s Sam Altman, Bumble’s Whitney Herd indicates that, as profitability becomes a priority at startups, pendulum swings back from the “visionary” founder to the professional. Check out the shocking change here.
One more thing! We are now on WhatsApp Channels! Follow us there so you never miss any updates from the world of technology. To follow the HT Tech channel on WhatsApp, click here to join now!
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