Bond trading: technology finally disrupts a $50tn market

Bond trading: technology finally disrupts a $50tn market

Abbie has enjoyed a brilliant start to her new job as a junior fund manager at AllianceBernstein, a $500bn investment group in New York. In her first three months she has handled thousands of bond trades worth nearly $19bn, never complaining, messing up or even taking a break. 

That’s because she is an algorithm.

AllianceBernstein’s latest robotic employee did initially have a problem understanding some of the niceties of her human bosses — at first Abbie was stumped by what they meant with the word “please” — but she already handles about 35 per cent of their bond trades. The asset manager, which is considering the relocation of its headquarters to Nashville, Tennessee, is optimistic that Abbie will soon be able to automate large parts of the work of its two dozen human assistant portfolio managers.

      THE Monetary Authority of Singapore (MAS) has assembled a group of industry players to help the financial sector regulator develop a guide on the responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions.  The 10-member Fairness, Ethics, Accountability and Transparency (Feat) Committee will be co-chaired by MAS chief data officer David Hardoon and PrimePartners co-founder Hsieh Fu Hua, the MAS said in a statement on Monday.  Also on the committee are Senior Counsel V K Rajah, Singtel non-executive independent director Teo Swee Lian, Allianz chief data scientist Raymond Au; DBS chief data and transformation officer Paul Cobban, Standard Chartered Bank chief data officer Shameek Kundu, United Overseas Bank chief data officer Richard Lowe, OCBC Bank head of group customer analytics and decisioning Donald MacDonald, and Singapore Exchange head of fintech and data Kelvin Tan.  The MAS is aiming to complete the guide by the end of the year, and will be engaging the industry in the second quarter of 2018.  The guide will "set out key principles and best practices for the use of artificial intelligence and data analytics, helping financial institutions to strengthen internal governance and reduce risks of data misuse", the MAS said in a statement.  The MAS is also working with Singapore's Infocomm Media Development Authority on developing a broader understanding of artificial intelligence governance across sectors.

THE Monetary Authority of Singapore (MAS) has assembled a group of industry players to help the financial sector regulator develop a guide on the responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions.

ASIA CREDIT CLOSE: Traders shrug off trade tariffs, bond supply fears

ASIA CREDIT CLOSE: Traders shrug off trade tariffs, bond supply fears

Chinese high-yield bonds were marginally weaker, but there was no sign of a sell-off in metals-related credits, despite growing rhetoric from the US about trade tariffs on steel and aluminium.