Mon, Dec 10, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

NRI and Mizuho Bank complete proof-of-concept on AI for derivatives contracts

Monday, July 31, 2017
Opalesque Industry Update - Nomura Research Institute, Ltd. (NRI), a leading provider of consulting services and system solutions, in collaboration with Mizuho Bank, Ltd., today announced the completion of a proof-of-concept (PoC) project developed to examine the applications of artificial intelligence (AI) solutions for derivative contract operation.

Mizuho executives made the improvement of the operational efficiency of derivative contract procedures a priority and approached NRI to develop a test in which the bank could examine how AI solutions could address this need. Traditionally, the standard derivative contract procedure at Mizuho included the exchange of print ISDA contracts with clients via FAX and PDF and the manual archiving of all the information. As each contract contains an enormous amount of information that is unique to each individual contract, registering the information to the system and referring to past contracts requires not only specialized knowledge but also a large amount of time-consuming manual input.

The PoC confirmed that OCR (Optical Character Recognition) can digitize ISDA contracts and the system can define, extract, and archive the sum total of information from the digitized contract into a format that can be easily accessed and searched after the fact. As a result, the time it takes for analysts to register ISDA contract information into the system and refer to past information is significantly decreased.

"We are excited to continue to develop new AI applications for functions across the financial industry with partners like Mizuho," said Hiroyuki Nakayama, General Manager of Financial Business Planning Division of NRI. "NRI is at the forefront of AI research and development for the financial services sector in Asia, and we continue to learn new and exciting applications for the technology that we are seeking to implement further through strong partnerships."

Masahiro Ueki, Senior Vice President of Legal and Compliance Team and Global Markets Coordination Department at Mizuho said, "In addition to the improved operation efficiency brought by the AI implementation, we expect these exciting new systems can also maintain a high-level understanding of ISDA contract operations across the board." Based on the PoC results, Mizuho intends to continue working with NRI to develop a full-fledged system solution for all derivative contract operations.

NRI has been researching and conducting PoC for AI applications in document management, including contracts and payment record processing. NRI recently evaluated the iManage RAVN AI platform to automatically extract data from thousands of ISDA contracts. iManage automates routine cognitive tasks, provides powerful insights and streamlines how professionals work, while maintaining the highest level of security and governance over critical client and corporate data.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Northern Trust builds out alternative funds offering on wealth management platform[more]

    Laxman Pai, Opalesque Asia: Chicago-based asset manager Northern Trust has added private market capabilities to supplement the recently launched ArcLine Alternatives platform for the firm's wealth management clients. The administrator of assets worth $10.8tn said in a press note that the priv

  2. New Launches: Fidelity launches water and waste strategy, NewView Capital debuts with $1.35bn fund, Värde Partners raises $400m for Asia Credit Fund[more]

    Fidelity launches water and waste strategy From Investment Europe: Fidelity has unveiled a strategy focusing on sustainable investment opportunities within the water and waste management sectors. The Fidelity Sustainable Water and Waste Fund seeks to deliver strong risk adjusted returns a

  3. Activists: Neiman Marcus creditor steps up attack on MyTheresa transfer plan, Aphria calls shortseller claims 'false and defamatory', Marijuana stock Aphria plummeted as it fought a short seller who called out 'something very sinister'[more]

    Neiman Marcus creditor steps up attack on MyTheresa transfer plan From Business of Fashion: Neiman Marcus is once again feeling the heat. On Monday, one of its creditors - distressed debt investor Marble Ridge Capital - delivered an urgent letter to to the department store group's board

  4. Outlook: The economist who discovered the yield curve's predictive powers says he's getting worried, The 'big squeeze': Ray Dalio, founder of the world's largest hedge fund, breaks down how the next financial meltdown will look different from the last[more]

    The economist who discovered the yield curve's predictive powers says he's getting worried From CNBC: Arturo Estrella and his former Fed colleagues used to watch the relationship between the 10-year Treasury and the 3-month bill. A lot of people have been focused lately on the di

  5. People: Deutsche Bank appoints new country head in Switzerland, London's MENA Capital and Dubai's Al Mal agree collaboration deal, BlueBay appoints new CIO[more]

    Deutsche Bank appoints new country head in Switzerland From Investment Europe: Deutsche Bank has appointed Claudio de Sanctis as the new chief executive officer of Deutsche Bank (Switzerland) Ltd, effective 1 February 2019, after Peter (Pedro) Hinder decided to step down. The appoint