INGs bond-trading bot does better than many humans
The software has lifted the number of times the bank has the second-best price on a bond in the market by 20%, while reducing mispricing — and thus trading costs — also by about 20%
London — An artificial intelligence (AI) platform developed by ING has helped the firm improve its bond trading performance, and the company now plans wider use of the technology, one of the Dutch bank’s senior trading executives says. ING is also releasing a customer-facing version of the technology to help clients trade bonds, Santiago Braje, the bank’s global head of credit trading, said at an AI conference in Amsterdam on Wednesday. In its first full year of deployment, the software — which ING calls Katana Edge — has allowed traders to make pricing decisions faster, improving the number of market-making trades the firm wins by 20%, Braje said.
The software has also increased the number of times the bank has the second-best price on a bond in the market by a similar percentage, while reducing mispricing — and thus trading costs — by again, about 20%, he said. ING initially used the software with traders specializing in thinly-traded emerging-market bonds. The firm now plan...
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