Wed, Apr 24, 2019
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. Institutional Investors: Here's how much public pensions are in the hole by per U.S. resident, Swedish pension giant awards $1.5bn PE mandate, CalSTRS on lookout for private equity investment consultants, Baltimore Fire & Police commits to LaSalle value-added real estate fund, US, European institutional investors plan to pile into China's capital markets, survey finds[more]

    Here's how much public pensions are in the hole by per U.S. resident From Value Walk: A lthough some government agencies have demonstrated a desire to deal with the pension crisis, the problem of unfunded liabilities continues to get worse year after year. A new report pegs U.S. public pe

  2. YieldStreet acquires Carlyle-backed Athena for $170m to add art financing to its alternative investment platform[more]

    Laxman Pai, Opalesque Asia: Yieldstreet, a closely held digital wealth management platform, acquires Athena Art Finance from Carlyle Group and co-investors in a deal valued at $170m. With this acquisition, YieldStreet, which raised $62m in February to further open to a wider base of investors

  3. Europe: KKR strikes hedge fund gold with British billionaire pair, Net outflows continue at Swiss asset manager GAM, Swiss fintech launches hedge fund platform, Cash-flush buyout firms target Europe in take-private scramble[more]

    KKR strikes hedge fund gold with British billionaire pair From Bloomberg: A pair of 200-year-old wooden elephants adorn the London lobby of one of the financial world's biggest beasts. The carvings guard the Chelsea office of fast-growing $39 billion hedge fund Marshall Wace. Co-foun

  4. News Briefs: DE Shaw to revert to '3 and 30' model as cost pressures bite, Lyft's IPO disaster is good news for tech IPOs, Jones Zafari group: The 'virtual family office' comes of age, The rise of 'super carry' unsettles private equity investors[more]

    DE Shaw to revert to '3 and 30' model as cost pressures bite From FT: DE Shaw is ratcheting up the cost of its flagship $14bn hedge fund despite falling fees across the asset management industry, highlighting the still-ravenous demand enjoyed by top quantitative investment groups.

  5. Performance: BlueMountain was one of the biggest losers of the first quarter[more]

    From Institutional Investor: BlueMountain Capital Management - the hedge fund firm fighting a proxy battle over the future of bankrupt California power company PG&E - has another problem.Its main fund, BlueMountain Credit Alternatives, is down 4 percent for the year through April 5, according to HSB