Misys enhances trade monitoring software with AI
- Trading Systems , Infrastructure
- 15.05.2017 10:15 am
Misys has stepped up to the artificial intelligence (AI) plate, today unveiling Misys FusionCapital Detect. The component helps financial institutions spot booking errors, anomalies and unusual activity, accelerating trade validations and reducing exceptions with machine learning.
FusionCapital Detect behaves as a smart personal assistant for validation teams, red flagging probable mistakes that are otherwise time consuming to identify. Users can catch errors that existing tools on the market let through, reducing operational risk and preventing manual mistakes that lead to decisions being made on the wrong profit and loss information and incorrect end-of-day reports.
“This is an exciting first step into the AI world for us,” said Nadeem Syed, CEO at Misys. “We’ve been able to harness these capabilities to build a system which delivers more insight and control in a fast-paced trading environment and we have already seen positive results with an early adopter global bank. This advanced technology boosts efficiency, saving costs, and can also be applied with longer term revenue growth in mind.”
Being able to validate transactions at T+0 has become crucial in today’s pressurised regulatory environment, including under:
• The European Market Infrastructure Regulation (EMIR): which makes it necessary to identify errors as soon as possible in order to confirm trades within 24 to 48 hours.
• The Fundamental Review of the Trading Book (FRTB): which requires daily risk reports – unidentified trade errors will invalidate these reports, breaching compliance.
Joséphine de Chazournes, Senior Analyst at Celent said, “Manual intervention and pre-coded controls have gone some way to helping reduce errors in the trade processing sphere but neither do enough to reduce the burden, especially as regulatory demands continue to add pressure in capital markets. AI stands to be a strong catalyst in transforming the landscape and Misys is making a smart move with FusionCapital Detect.”
The Misys component thrives on vast quantities of structured data where consistent patterns of trading behaviour can be deduced and then monitored. Machine learning, based on a mix of open source algorithms and proprietary developments, ensures continuous evolution of the tool to follow moving trading patterns.
FusionCapital Detect is available now. It is built on Misys FusionFabric technology and integrates with all core trade capture and validations systems.