BNP Paribas Securities Services' Smart Chaser
BNP Paribas Securities Services is implementing Smart Chaser, a trade matching tool using artificial intelligence and predictive analysis, to further automate the trade processing services it provides to investment managers.
Trade matching – the comparison of trade details between the client and its broker – is a key part of the middle office service provided by BNP Paribas.
According to the firm, using machine learning and predictive analysis, Smart Chaser will predict the likelihood that a trade will not “match” automatically and will therefore require manual intervention.
Thomas Durif, global head of middle office products at BNP Paribas Securities Services, said: “We estimate that up to 30% of the trades processed on behalf of asset managers require manual intervention in order to complete. This is an industry-wide challenge which is often caused by counterparties holding mismatching data for the same trade."
He added: Using predictive analysis, Smart Chaser will analyse historical data to identify patterns in trades that have required manual intervention in the past and proactively warn clients and their brokers on their live trading activity so they can take action promptly. We are already making good progress, having reached around 98% prediction accuracy.“