A naukri.com initiative
Dev
1d
41
Image Credit: Dev
AI-Driven Innovation in OTC Derivatives: A Business Analyst’s Roadmap for 2025
- The OTC derivatives market is undergoing a quiet revolution in 2025, with AI playing a crucial role in simplifying the complexities associated with these financial contracts.
- Challenges in OTC derivatives include manual processes, lack of standardization, and inefficiencies leading to discrepancies, hindered Straight-Through Processing, and increased risks.
- AI innovations in OTC derivatives range from neural networks for pricing to NLP tools for regulatory reporting, with platforms like JPMorgan's COIN and companies like Tradeweb leveraging AI for optimization.
- A business analyst's roadmap for 2025 in the OTC derivatives space involves stakeholder alignment, defining a product vision, agile prioritization, integration of AI models, and continuous iteration.
- Real challenges in implementing AI in OTC derivatives include data quality, model risk explainability, bias and fairness concerns, security, and integration with legacy systems.
- AI is seen as a tool to enhance human capabilities in OTC derivatives, with hybrid models expected to dominate by 2025, allowing humans to focus on strategic decision-making.
- AI and humans are envisioned to work as partners in the OTC world, with AI handling operational tasks while humans bring value through empathy and strategic insights.
- AI is reshaping post-trade infrastructure, enabling smoother processes and improved client relationships, while business analysts are key in translating technology into tangible value.
- By 2030, AI is expected to continue shaping OTC derivatives, with further integration of AI-driven solutions and collaboration between AI and human expertise.
Read Full Article
2 Likes
For uninterrupted reading, download the app