Read Kathleen Walch’s article about how ING is bringing AI to trading.
A few years ago ING Bank saw the power that AI can bring to various parts of their organization. In particular, visionary technology leaders at ING saw the power that AI could bring to bond trading, allowing them to make faster and sharper pricing decisions. Sharing his insights on an AI Today podcast interview, Santiago Braje, Head of Credit Trading at ING, explained more about how ING sees AI in the context of bond trading, and the vision behind its Katana platform.
Predictive analytics pattern to help bonds traders
Named after the ultra-sharp Japanese Samurai sword, Katana uses the pattern of predictive analytics to help traders decide what price to quote bonds when buying and selling for their clients, based on both historic and real-time data. Katana began as an augmented intelligence platform, and it was first used as a tool to assist traders working specifically inside ING. The problem Katana addresses for market makers is how to respond to requests from clients, especially in bond marketing..
In the market, the investors need to get in contact with banks to buy bonds. In the past it was common for them to call the banks to get the process moving, but as time and technology has progressed investors have been going through electronic methods more frequently. As electronic trades have become more common, the market has seen a shift from larger, infrequent trades, to smaller but more frequent trades. In turn, the market has become more competitive and investors look to get multiple quotes at the same time. The problem now is how can banks respond to these requests. Katana is designed to make this decision making process sharper and faster.
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