Swiss financial service provider SIX has collaborated with Israel-based Cortica and Hong Kong’s Duotem Capital for the development of artificial intelligence (AI) based services for the securities industry.
As part of the memorandum of understanding (MoU), SIX entered into a strategic partnership with Cortica and Duotem Capital to provide AI-based services covering collateral and cash optimization for the post-trade industry.
Duotem Capital CEO Philippe Metoudi said: “I have seen, first hand, the challenges financial institutions face in keeping up with regulation and compliance pressures while simultaneously trying to develop intelligent and automatable solutions for their operational businesses.”
Cortica will engage in the development of next generation AI technology, which learns on its own in real-time, interacts with the real world and collaborates with other technologies and machines.
Duotem Capital and SIX, along with Cortica, will identify and assess AI-based business chances in SIX’s existing business areas for the development of new business offerings for SIX in the financial sector.
The technology is being used to recognize trading patterns, create algorithms to identify fraudulent payments, machine-learning support for manual corrections in the post trading domain and create real-time business operation dashboard.
The organizations will further assess the cases over the course of the initial phase estimated to last for one quarter.
SIX, via its stock exchange arm, will provide historical transaction data to Cortica for modelling and algorithm development, which will be useful in the development of new solutions.
SIX Securities & Exchanges business unit head and executive board member Thomas Zeeb said: ‘Today’s AI capabilities, coupled with self-learning technologies, open up a world of possibilities and opportunities for us to improve the way we perform in terms of efficiency, transparency and compliance as an industry.
“We are at a point in the post-trade arena where breakthrough solutions – such as those promised by organisations such as Cortica and Duotem – can radically transform the way we interact with our clients and help them to strengthen their credibility for more sustainable business relationships with their clients and investors.”