Custodian BNY Mellon and cloud-computing giant Google team up to help clients predict – and avoid – settlement failures in the US treasury market.
In line with its strategy of open architectures, BNY Mellon now seeks to “leverage Google Cloud’s data analytics, artificial intelligence (AI) and machine learning (ML) technologies to develop new collateral management and liquidity solutions,” the bank writes in its press release.
The “innovative solution built on Google Cloud could help BNY Mellon clients forecast 40 percent of daily settlement failures to improve overall market liquidity,” it states.
Cloud players in heavier roles
As securities processing is increasingly moving to cloud-hosted platforms, the post-trade industry sees computing giants coming in as new kids on its block. Amazon’s AWS infrastructure supports services by many technology providers (including Nasdaq). Microsoft was recently announced as a participant of HUB, a consortium with asset managers and others to build a new operations platform. And now Google then.
In addition to the treasury related solution presented here, BNY Mellon says it is working on artificial intelligence-powered solutions in other areas too, including “securities lending, liquidity forecasting, dynamic controls for pricing, anomaly detection for transactions, and automated document processing”.