HSBC launches AI pricing chatbot for foreign exchange options

The chatbot uses natural language processing to analyse information from numerous sources and distribute it to clients as well as internally within the bank.

Investment bank HSBC has launched a pricing chatbot that uses artificial intelligence to give clients instant pricing and analytics for foreign exchange (FX) options.

Named Sympricot, the chatbot uses natural language processing (NLP) to gather and analyse information on market colour, pricing and liquidity, including sources of information otherwise difficult to obtain such as event weightings, relative value analytics and volatility time-series charting.

HSBC said the system would reduce operational risk and eliminate repetitive and unnecessary manual tasks previously associated with gathering complex trading information for clients.

“The key advantages of Sympricot are speed and easy access to accurate information – often data or analytics that would otherwise be difficult to obtain,” said Allen Li, global head of eRisk for FX Options at HSBC.

The new technology solution is the latest in a long list of an industry-wide effort to roll-out artificial intelligence in their markets businesses.

Last year, Northern Trust implemented new machine learning models for the FX currency management solutions business, while UBS announced it had deployed AI to data within its Bond Port fixed income platform.

That said, some buy-side firms are beginning to explore the use of new technologies within their own FX trading operations.

In June, asset manager Vanguard announced it had collaborated with blockchain specialist Symbiont and other industry heavyweights including BNY Mellon, State Street, and Franklin Templeton, to apply DLT to FX forwards trading processes.

The project included the completion of a pilot whereby Vanguard simulated multiple 30-day FX forward contracts with the other industry players, in a proof of concept that tests how firms could trade OTC markets on a DLT network in the future.