Dutch banking group ING has launched a new tool called Katana, which uses artificial intelligence (AI) technology to enable bond traders make better pricing decisions.
The tool, developed by the bank’s Financial Markets Global Credit Trading team in London and the Wholesale Banking Advanced Analytics team, enables traders to make decisions on what price to quote while purchasing and selling bonds for clients.
Katana aids a trader’s decision based on historic and real-time data that later translates into a prediction for the trader.
The tool has already been trialled with the emerging markets (EM) desk in London. The test revealed a 25% decrease in trading cost and quicker pricing decisions for 90% of trades. The company also unveiled plans to upgrade the new tool by adding new features later.
ING global head of credit trading Santiago Braje said: “With Katana, AI is applied to enhance the traders’ decision-making abilities, allowing them to use their natural intuition and expertise in the most effective way. This is a powerful combination. Our traders stay fully in control, but are now better equipped to give the best quote to our clients every time.”