AI and ML are playing an ever-greater part in risk management, as manual processes on low-touch orders are able to be automated, thus significantly mitigating risk of human error.
The benefits of implementing these new technologies are clear. However, some misgivings have arisen around the automation of processes. Key concerns voiced by our survey respondents are the potential for a flawed implementation process and the possibility of bad data being mistakenly used to make key decisions resulting in bad trades. Another top concern, according to our survey, was that a system would require traders to spend much more time on manual trades.
However, there are ways in which these issues can be avoided when investment firms give the go-ahead to implement automation technologies. By ensuring that enough people with the key knowledge from across the fixed income sector are included at the start of the process, firms can reduce the possibility of error.
With AI and ML being successfully adopted and utilised by the execution trading desk at an increasing pace, the future looks bright for the fixed income trading industry. With the increasing and inevitable maturity of automation, alongside the greater number of more highly skilled employees coming into the workforce, the future benefits are boundless.