SIX Partners to Develop Post-Trade AI Based Services

Blog entry

SIX, owner of the Swiss stock exchange, has entered a strategic partnership with Israel’s Cortica and Hong Kong’s Duotem Capital to develop artificial intelligence (AI) based services for the securities industry. Initial work will focus on the post-trade industry, with a viable service expected to be demonstrated in coming months.

The collaboration will identify and evaluate AI-based business opportunities in SIX’s business areas and develop new offerings for SIX in the financial sector. These include the recognition of trading patterns such as front running and spoofing, the creation of algorithms to identify fraudulent payments, machine learning support for manual corrections in the post-trading domain, as well as the creation of a real-time business operations dashboard. Further use cases will be evaluated by the organisations over the course of the initial phase, which will last for one quarter.

To enable the creation of these, and potentially other solutions, SIX, through its stock exchange arm, will make its historical transaction data available to Cortica for modelling and algorithm development. Cortica develops AI technology that learns on its own in real time, interacts with the real world, and collaborates with other technologies and machines.

According to Thomas Zeeb, member of the executive board and head of the securities and exchanges business unit at SIX, says: “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.”

Philippe Metoudi, CEO at Duotem Capital, comments: “Working with SIX, Cortica and Duotem plan to create solutions that resolve industry issues by bringing in future-oriented technologies and applying systems that can learn faster, adapt more rapidly and deliver to a higher quality. SIX has seen the potential for industry-wide service improvement without jeopardising existing, mission critical, infrastructure.’