ING rolls out AI bond trading tool

ING has introduced a new artificial intelligence (AI) tool designed to improve decision making in bond trading.

Named Katana, the system uses predictive analytics to help traders decided what price to quote when a client wants to buy or sell a bond. The tool also provides traders with a visualisation of relevant historic and real-time data, which helps to assimilate information more easily, make faster and sharper price decisions, and create better liquidity for clients.

Since testing Katana at its emerging markets desk in London, ING has benefitted from faster pricing decisions for 90 per cent of trades and reduced trading costs by 25 per cent. Traders have also been able to offer clients the best price four times more frequently.

The bank noted that traders will also be better equipped for MiFID II when it comes into effect in January, as the tool helps them manage higher trading volumes and better prepares them for further acceleration of the markets.

Santiago Braje, global head of credit trading at ING Wholesale Bank, explained: “We have seen some examples of applied AI on the trading floor before, but in most cases they have a narrow focus on automation, which restricts them to liquid asset classes where the trader is replaced by a machine.

“With Katana, AI is applied to enhance the traders’ decision making abilities, allowing them to deploy 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.”

    Share Story:

Recent Stories


The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.