Trading Compliance - The Benefits of Artificial Intelligence for Compliance

Compliance solutions are crucial. They guarantee that the complex interaction between stakeholders, such as buyers, sellers, brokers, traders, liquidity providers, and funds, can be recorded and, when needed, investigated promptly and effectively.

Compliance also plays a crucial role in identifying and catching the rare rogue trader involved in illegal off-channel communications. These rogue activities can result in substantial fines for firms, highlighting the necessity for compliance teams to detect errant patterns early on. Early identification of these risks can help avoid regulatory scrutiny, which could severely impact the firm's reputation, future profits, and share price.

However, if an entirely comprehensive compliance platform and detailed policies can work today, how can new technology, such as AI, improve on what's already in place?

I asked our Cadence Compliance SaaS cloud partner, Liquid Voice, that exact question. As it turns out, they see AI-enhanced tools as a valuable addition to compliance workflows.

In February 2024, Liquid Voice unveiled AILSA, their AI-powered analytics Assistant, revealing how it will drive efficiency and intelligence.

AILSA can transcribe in different languages, rapidly analyse data, and integrate with Liquid Voice's full recording, quality management, and analytics solution suite, all delivered in a single pane.

Chris Berry, Managing Director (UK), for Liquid Voice said, “Transcription & Analytics has been a cornerstone of the Liquid Voice product suite for over a decade and whilst the efficiency and accuracy of these technologies has gradually improved over this time the leaps that can be achieved as a result of large language models (LLM) were too great to be ignored.”  

Chris continued, “Incorporating LLM into our analytics solution, the time to deploy, accuracy and consistency of the results are lightyears ahead of just 6 months ago and when compared against our peers, the customer feedback has been very positive indeed with our focus being on the best possible accuracy and mailability above less performant ASR pre-configured reports.”

AI-powered tools and algorithms, such as those from Liquid Voice, can quickly analyse enormous volumes of data to identify potential compliance risks and flag suspicious activities much faster than their human counterparts.

By automating multiple compliance processes, AI tools save time and resources for both the compliance and trading teams. 

Deeper insights into potential compliance risks and patterns of financial crime allow stakeholders in the ecosystem to take proactive steps to mitigate these risks.

AI algorithms can quickly analyse large volumes of data faster than one person can and identify potential risks that compliance teams might miss with only manual reviews.

Liquid Voices estimates even simple tasks like summarising a trade or interaction can save up to 25% of a user's time and instead be spent on more skilled tasks.

Utilising our SaaS platform CADENCE, compliance teams can access the AILSA assistant and use AI to optimise their internal workflows, and this could include:

• Bespoke Trade Summaries - Automated call summaries streamline the post-interaction process for traders, providing a concise overview of customer conversations ready to add to your CRM.
• Trading Audits - Build audits around key clients, pulling data from across multiple channels.
• Insights on Trading Activities - Sentiment modelling can trigger alerts that are highlighted for the team leads or compliance officers.  
• Support Self-Policing - using early identification of trends, patterns or keywords. 

At Speakerbus, our conviction is firm: AI stands poised to revolutionise the trade finance ecosystem, fostering innovation and progress that will benefit all stakeholders. While we are still in the experimental phase today, it's with unwavering certainty that we foresee AI tools becoming as indispensable on the trading floor as telephones, dealerboards or spreadsheets, marking a transformative era in financial operations.

How do you see AI helping with compliance?