The TRADE 56 - Page 28

[ C O V E R S T O R Y | N E I L J O S E P H ] “As the job changes, being able to innovate as a group with different teams just makes every day exciting. Every individual challenge met, be it a small everyday challenge or something like preparing for MiFID II and implementing that the way we wanted and needed to, is a great accomplishment for the team and the desk.” implementing that the way we wanted and needed to, is a great accomplishment for the team and the desk.” Ignore the noise Joseph and his team give short shrift to much of the noise around new and emerging tech- nologies, the foremost of which in the asset management world at the moment is artificial intelligence (AI). Joseph says that while the desk has adopted and used forms of machine learning for some years, much of what is currently available in terms of AI functionality simply isn’t applicable for this kind of work. As Joseph points out, there is still a lot of value in specific facets of machine learning, not just on the European equity trading desk. In April, The TRADE revealed that JP Morgan Asset Management’s Asia Pacific desk had developed a new model based on machine learning to make the execution of orders more efficient and less expensive. The model currently provides recommenda- tions to human traders, but it is increasingly taking over an automated role in executing transactions and the Asia Pacific equity trad- ing team is now targeting to have around 50% of the notional value of all regional trading activity automated with the machine learning model by end the of the year. 28 // TheTrade // Summer 2018 Whether similar models are im- plemented in Europe remains to be seen, but Joseph underlines that the business has been using machine learning techniques for some time already, particularly in the field of performance-based broker distri- bution for algorithms. The real chal- lenge however is to now apply these techniques around hard-to-define rul