Recently, the People’s Bank of China officially issued a document announcing the winning units and awards of the “2022 Financial Technology Development Award”. The “Interbank Financial Market AI Intelligent Trader” project applied by the Bank of Shanghai won the third prize.
The “Financial Science and Technology Development Award” is the only ministerial-level science and technology award in my country’s financial industry. It was established by the People’s Bank of China in 1992 to focus on the selection of outstanding domestic scientific and technological innovation achievements. It is highly professional, wide in coverage, and highly recognized.
The award-winning “Interbank Financial Market AI Intelligent Trader” project is an intelligent innovation project of the Bank of Shanghai in the field of interbank financial market transactions. It aims to improve core trading capabilities, reduce transaction costs, support the development of the real economy, and help improve Shanghai’s The international financial center has radiating power, driving force and influence.
The project uses intelligent technologies such as natural language recognition, machine learning, and quantitative trading to realize full-process intelligent transactions such as pre-transaction risk control in the financial market inquiry transaction process, multi-threaded intelligent strategy quotation in the transaction, and intelligent post-transaction issuance. Successfully created the first AI bond trader, the first AI interest rate swap trader, and the first AI foreign exchange swap trader in the inter-bank market.
After the project went online, the proportion of automated RMB market-making transactions at Bank of Shanghai increased to more than 90%, and the proportion of automated foreign exchange market-making transactions increased to 40%. At the same time, after the AI smart bond trader is put into production, the bilateral quotation spread has narrowed to 1/4 of manual quotation, the inquiry response speed has been shortened to less than 1 second, and the transaction time has been compressed from 10 minutes to less than 1 minute, improving the quotation quality. Improve the timeliness of quotations and effectively enhance the price discovery capabilities of Bank of Shanghai.
The launch of this project will help promote the transformation of China’s inter-bank market transaction model from manual to intelligent, improve the liquidity of the inter-bank market, serve the financing and hedging needs of corporate customers, and serve the development of the real economy. Since the project was put into production, it has received widespread attention from the industry and has carried out a number of special exchanges with the industry. Many institutions have started the construction of AI traders in the financial market, promoting the digital transformation of the inter-bank market. At the same time, the project has also been affirmed by the China Foreign Exchange Trading Center, which has successively released “Shanghai Bank’s AI bond trader “Little Dolphin” on the interbank market” and “Shanghai Bank’s AI foreign exchange trader officially takes office” on its official public account. A special article spoke highly of the Bank of Shanghai’s AI intelligent trader project.
Developing the digital economy and digital finance is an inevitable move to embrace a new round of technological revolution. The Central Financial Work Conference proposed five major articles such as digital finance. Bank of Shanghai will give full play to the technological advantages of AI intelligent traders, stimulate innovation power with digital drive and agile transformation, improve operation and management efficiency, accelerate digital transformation, make innovative articles on digital finance, and follow the path of high-quality development.