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sense,” said Ian Mawdsley, head
of buy-side trading for EMEA and
APAC at Refinitiv, during a webinar
hosted by The TRADE in March.
“The reality is that we have been
using both of these processes [AI
and ML] for some time. If we look
at algo trading supplied for the
sell-side in particular, much of that
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was formed in the first place to
automate some of the more menial
tasks sales traders were perform-
ing. That has now been taken to the
next level where people are looking
at price discovery and liquidity
discovery.”
Further to this, looking at the
practical applications of AI and
ML, an area that has been of partic-
ular interest to the buy-side is the
algo wheel, or broker selection
processes. While an algo wheel is
technically a form of AI, it is on
the more basic, rules-based end of
the spectrum, but it does provide a
solid foundation to build upon.
JP Morgan Asset Management
has homed in on this space and
produced a framework, known as
STARS (Systematic Trading Algo-
rithm Recommendation System),
which aims to optimise the way in
which traders choose algorithms
using ML technology. According
to the firm’s global head of equity
trading automation and execution,
Ashwin Venkatraman, the vast
amounts of data now accessible in
the market underpins and is at the
heart of implementing these new
tools on the trading desk.
“We've had [STARS] since 2017,
we've had 90% of our algorithm