robots in finance

They are already here, and are said to be more efficient than human traders!

JPMorgan will soon be using a first-of-its-kind robot to execute trades across its global equities algorithms business, after a European trial of the bank’s new artificial intelligence (AI) programme showed it was much more efficient than traditional methods of buying and selling. ….

The [job of the] AI — known internally as LOXM — … is to execute client orders with maximum speed at the best price, by using lessons it has learnt from billions of past trades — both real and simulated — to tackle problems such as how best to offload big equity stakes without moving market prices. ….

One possible evolution of LOXM is teaching the machine how to get to know individual clients, so that it could consider their behaviour and reaction as it decides how to trade.

Laura Noonan, “JPMorgan develops robot to execute trades“, Financial Times, 31 July 2017 (gated paywall).

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