Northern Trust Bank Rolls Out Machine Learning Tech for FX Management

Chicago-based custody giant and bank Northern Trust announced today it has enhanced its Foreign Exchange (FX) currency management solutions with machine learning models designed to enable greater oversight of thousands of daily data points and help reduce risk throughout the currency management life cycle.

The solution has been developed in conjunction with Northern Trust’s strategic partner Lumint Corporation.

Based in Boston, Lumint is a privately held corporation founded in 2014 to provide comprehensive currency management services to institutional investors by delivering process excellence, scalability and real time performance Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term through a highly automated proprietary platform.

The advanced technology utilized by the Robotic Oversight System (ROSY) for Northern Trust, systematically scans newly arriving, anonymized data to identify anomalies across multi-dimensional data sets. It is built on machine learning models developed by Lumint using a cloud platform that allows for highly efficient data processing.

“In a data-intensive business, ROSY acts like an additional member of the team working around the clock to find and flag anomalies. The use of machine learning to detect data outliers enables us to provide increasingly robust and intuitive solutions to enhance our oversight and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, which can be particularly important in volatile markets,” Andy Lemon, head of currency management, Northern Trust, said.

“Northern Trust’s deployment of ROSY amplifies the scalability of its already highly automated currency hedging operation; especially for the more sophisticated products such as look-through hedging offered to its global clients. We look forward to continuing to collaborate with them as the demand for scalable and flexible currency management solutions moves to the next level,” Alex Dunegan, CEO, Lumint, added.

Partners since 2018

Northern Trust announced a strategic partnership with Lumint in 2018 to drive innovation in currency hedging, including comprehensive transparency reporting and analytics to meet the evolving needs of asset owners and asset managers.

Northern Trust’s global currency management suite comprises portfolio overlay, share class hedging and look through hedging solutions to help mitigate currency volatility, while actively supporting investment manager distribution strategies.