AI Makes Inroads in Post-Trade
New thoughts often lead to new ideas.
And while much focus always falls on the life of the trader and the Hollywood stylized trading desk, there are other areas equally important to the trading business, such as the back office. In a new report from Celent, the market consultancy focuses on post-trade processing and the new solutions being developed which leverage next generation technology and innovative operating models which will be essential to improve efficiency and reduce costs.
The report titled, “Next Generation of Post-Trade Technology: Evolution to Revolution,” anlaysts and authors Josephine de Chazournes and Arin Ray discovered that major changes in post-trade infrastructure, high pressure on costs, and the need for improving efficiency across trade lifecycle, collateral and liquidity management are fostering innovation in post-trade technology and operations.
Also, Celent noticed that artificial intelligence (AI) is finally making significant inroads in post-trade operations automating many manual processes. Cloud adoption is also well underway in capital markets and is enabling mutualization and utility type initiatives. Many PoCs and use cases are being developed leveraging DLT bringing its promises closer to reality.
Lastly, the consultancy reported seeing interesting mix of Fintech startups and incumbent providers developing innovative solutions in post-trade. At the same time banks are increasingly willing to partner with these players, as well as with other peer banks, in developing next generation solutions.