HSBC announced the introduction of a novel artificial intelligence (AI) service, dubbed ‘AI Markets,’ designed to enhance global market accessibility for institutional investors. By leveraging the capabilities of natural language processing (NLP), the new service aims to improve investor interactions with global markets, allowing them to generate custom analytics and access HSBC’s comprehensive cross-asset data sets.
AI Markets represents a significant addition to HSBC’s array of AI-powered initiatives, aligning with the bank’s ongoing commitment to innovative technology adoption. The service is available through HSBC’s execution platform Evolve, third-party platforms, or directly via an Application Programming Interface (API).
Richard Bibbey, HSBC’s Global Head of FX, EM Rates, and Commodities, said, “HSBC AI Markets has been built from the ground up with user experience in mind. It is designed to be adaptable, collaborative, and dynamic in order to deliver solutions that fit the specific needs of each client.”
The bank, whose global footprint is complemented by the new service’s NLP capabilities, can now offer advanced pricing and execution interfaces to institutional investors.
HSBC’s advocacy for AI integration is not new. The bank has previously launched a series of AI-driven initiatives, including an AI-based rules portfolio construction strategy known as AiMAX and an AI pricing chatbot for Foreign Exchange (FX) options.
Adding to the bank’s AI portfolio, HSBC announced the launch of the HSBC AI Global Tactical Index (HSBC AIGT) on April 20, 2023. The index employs machine learning powered by Amazon Web Services, Inc. (AWS) for equity investing. HSBC AIGT uses AWS AI services to process and learn from data thousands of times faster than humans. The index can automatically adapt its approach as market dynamics change and new information becomes available.
HSBC AIGT’s exclusive provider is Ibexis Life & Annuity Insurance Company (Ibexis), a provider of retirement savings products. The index employs a rules-based investment strategy using advanced AI and machine learning techniques to make informed investments across a global portfolio of assets.
Dave Odenath, Global Head of Quantitative Investment Solutions at HSBC Global Banking and Markets, noted that successful future investment strategies would need to analyze and learn from an ever-increasing data pool while responding promptly to changing market conditions. “HSBC AIGT puts the power of an adaptive AI system fuelled by data into a global tactical allocation framework, creating a systematic investment strategy that is designed to keep up with and thrive in increasingly complex markets,” Odenath said.
This move by HSBC marks another step in the financial sector’s broader adoption of AI and machine learning technologies to enhance investment strategies and customer experiences. As financial institutions continue to leverage these advanced technologies, investors are likely to witness an increasing level of customization and efficiency in their market interactions.
Thank you for reading our coverage on the recent advancements by HSBC. How do you think AI and machine learning will continue to shape the future of institutional investing? Do you see this as the way forward for global markets? As always, we look forward to hearing your thoughts and comments below.
