AI and machine learning spell radical changes for traders, asset management

Singapore

ARTIFICIAL intelligence and machine learning are set to shake up traders' jobs by enabling them to generate their own alpha, boosting fund managers' returns in today's asset management industry, currently under pressure to justify fees with outperformance.

That's according to Seth Merrin, founder and chief executive of Liquidnet, a dark pool trading platform with more than 930 asset managers as members, across 46 markets. Dark pools were originally designed for institutional investors to trade large blocks of shares without having to disclose their identities, volumes or prices, unlike traditional exchanges. Members of Liquidnet manage assets totalling US$15 trillion.