BNP Paribas Securities Services is implementing Smart Chaser, a trade matching tool that uses artificial intelligence to warn brokers and their clients of live trades that may require manual intervention to complete.
The French banks estimates that up to 30% of the trades processed on behalf of asset managers fail the straight-through processing test due to counterparties holding mismatching data for the same trade.
With Smart Chaser, the bank aims to be able to predict the likelihood of a delayed trade matching, ascertain the contributors to the delay and suggest a pre-designed email template to be sent by the middle office operational team to relevant clients.
Thomas Durif, global head of middle office products at BNP Paribas Securities Services, says: “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.“