Goldman Sachs and Deutsche Bank Push Boundaries with Agentic AI Trading Tests

Enhancing Trading Surveillance with Agentic AI

Financial institutions are delving into the realm of artificial intelligence to bolster their trading surveillance capabilities. Instead of relying on traditional methods like keyword scanning and rule-based alerts, banks are now turning to agentic AI systems that can analyze patterns in real time and pinpoint potential misconduct that requires human intervention.

Revolutionizing Surveillance Systems

Goldman Sachs and Deutsche Bank are at the forefront of adopting agentic AI tools for trading surveillance, aiming to enhance oversight of orders and trades. These innovative systems utilize software agents to analyze trading activity as it unfolds, identifying irregularities that may escape traditional surveillance methods.

Adaptive Agents for Modern Challenges

Large banks typically employ automated surveillance systems that operate based on predefined rules triggering alerts for specific trade characteristics. However, the sheer scale and complexity of modern markets result in a high number of false positives and the potential oversight of subtle forms of manipulation that do not fit known patterns.

The new agentic systems, as reported by Bloomberg, take a more sophisticated approach by examining trading behavior across multiple signals, comparing it with historical data, and detecting unusual combinations of actions. These tools complement the work of compliance officers by surfacing cases that warrant further human scrutiny.

Deutsche Bank’s Collaboration with Google Cloud

Deutsche Bank has partnered with Google Cloud to develop AI agents capable of monitoring trading activity in real time. The system reviews vast amounts of order and execution data, flagging anomalies for prompt investigation by human compliance staff.

The bank’s focus on leveraging AI technology in surveillance efforts underscores a broader trend in the financial sector, where institutions are harnessing advanced AI models beyond customer interfaces to analyze complex trading data effectively.

Empowering Compliance with Agentic AI

Similarly, Goldman Sachs is exploring the application of agentic AI in surveillance, aligning with its strategic investments in AI for trading and risk management. The bank aims to deploy AI agents capable of independently scanning for potential misconduct indicators and identifying unusual patterns that may elude traditional surveillance methods.

By adopting agentic AI tools, financial institutions seek to enhance early detection of market abuse and manipulation, thereby mitigating risks and upholding regulatory standards. These systems complement the work of compliance teams by filtering noise and highlighting cases that require human intervention.

Unleashing the Power of Agentic AI

Agentic AI systems represent a significant shift in how financial institutions approach compliance and surveillance functions. These systems can autonomously analyze data, identify patterns, and escalate findings without constant human oversight, enabling faster and more effective monitoring of trading activities.

While agentic AI does not replace human judgement in decision-making processes, it streamlines information processing and enhances surveillance capabilities beyond the limitations of static rule-based systems.

Embracing Innovation in Compliance

The adoption of agentic surveillance tools signals a transformative shift in how compliance teams operate, moving towards a more proactive approach in identifying and addressing potential misconduct. By leveraging advanced AI technology, banks can streamline surveillance processes, reduce false alerts, and focus human efforts on evaluating complex cases.

Overall, the integration of agentic AI in compliance functions represents a significant step towards enhancing market oversight, improving regulatory compliance, and safeguarding the integrity of financial markets.

(Photo by Markus Spiske)

See also: Mastercard’s AI payment demo points to agent-led commerce

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is part of TechEx and co-located with other leading technology events. Click here for more information.

AI News is powered by TechForge Media. Explore other upcoming enterprise technology events and webinars here.