Artificial Intelligence and Stocks

Tue, 2017/08/01 - 12:05pm | Your editor
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JP Morgan, the bank where my company has its account, today revealed it has developed a robot which can carry out global equity trades on behalf of its client quickly and at the best price, using artificial intelligence.

According to the Financial Times, the system, called LOXM, was first used in the bank's European equities algorithms business in Q1, and will next be launched in Asian markets.

LOXM will hit the US in Q4, according to Daniel Ciment, JPM head of global equities electronics trading. LOXM builds its prowess by using lessons it has learned from billions of past trades, both real and simulated, and knows how to best sell of large stakes in listed companies without causing prices to move against it. Mr Ciment told the pink newspaper that in European trials so far LOXM got “significantly better” pricing than human beings. Moreover LOXM is cheaper nad more focused than humans who are easily bored by the details of finding the best execution.

LOXM however does not have the ability to make trading decisions on its own. It still needs human beings (or maybe human bagels) to tell it to buy or sell.

The eventual goal is to teach LOXM to learn the way individual clients react before it begins trading on their behalf, but the bank points out that customers will have the option of agreeing to this evolution on their behalf—or not.

 

More today from the world of human stock trading with two companies reporting and lots of tidbits of news from around the world, from London to Tel Aviv, from Hong Kong to Helsinki, from Toronto to São Paulo. We start of with a robot-written quarterly and then fill in the gaps...

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