Northern Trust Deploys Artificial Intelligence for Currency Management Using Advanced Machine Learning
Solution Brings Greater Data Oversight and Enhanced Risk Management
CHICAGO and LONDON – Northern Trust (NTRS) announced today it has enhanced its Foreign Exchange (FX) currency management solutions with machine learning models designed to enable greater oversight of thousands of daily data points and help reduce risk throughout the currency management lifecycle. The solution has been developed in conjunction with Northern Trust’s strategic partner Lumint Corporation.
The advanced technology utilized by the Robotic Oversight System (ROSY) for Northern Trust, systematically scans newly arriving, anonymized data to identify anomalies across multi-dimensional data sets. It is built on machine learning models developed by Lumint using a cloud platform that allows for highly efficient data processing.
Andy Lemon, head of currency management, Northern Trust, said: “In a data-intensive business, ROSY acts like an additional member of the team working around the clock to find and flag anomalies. The use of machine learning to detect data outliers enables us to provide increasingly robust and intuitive solutions to enhance our oversight and risk management, which can be particularly important in volatile markets.”
Alex Dunegan, CEO, Lumint, said: “Northern Trust’s deployment of ROSY amplifies the scalability of its already highly automated currency hedging operation; especially for the more sophisticated products such as look-through hedging offered to its global clients. We look forward to continuing to collaborate with them as the demand for scalable and flexible currency management solutions moves to the next level.”
Northern Trust announced a strategic partnership with Lumint in 2018 to drive innovation in currency hedging, including comprehensive transparency reporting and analytics to meet the evolving needs of asset owners and asset managers.
Northern Trust’s global currency management suite comprises portfolio overlay, share class hedging and look through hedging solutions to help mitigate currency volatility, while actively supporting investment manager distribution strategies. It forms part of the Northern Trust Global Foreign Exchange offering from Northern Trust Capital Markets, providing a range of liquidity, trading, transparency and foreign exchange solutions for institutional investors. Northern Trust Capital Markets provides brokerage, securities lending and transition management services, in addition to foreign exchange. It is a division of Corporate & Institutional Services, which provides asset servicing, fund administration and middle office and revenue enhancement solutions to institutional asset managers and asset owners around the globe.
Based in Boston, Lumint is a privately held corporation founded in 2014 to provide comprehensive currency management services to institutional investors by delivering process excellence, scalability and real time performance analytics through a highly automated proprietary platform.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2020, Northern Trust had assets under custody/administration of US $10.9 trillion, and assets under management of US $1.1 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/united-states/terms-and-conditions.