BNP Paribas has teamed up with Millennium Global Investments (MGI) on a foreign exchange index that uses artificial intelligence.
MGI provides systematic FX Signals to BNP Paribas, determining the long or short exposure to four liquid currency pairs selected to represent the global FX market (USDGBP, USDEUR, USDAUD and USDJPY).
What makes the index different is that it is boosted by signals generated by an AI model that uses machine learning to identify every day the dominant factors driving the performance of currency pairs.
Matthew Yandle, global head of structuring, BNP Paribas, says: "This new index broadens our range of systematic FX risk premia strategies for clients by combining BNP Paribas FX cost-efficient indices with MGI’s proprietary signals and risk management modules."
Finextra’s NextGen Banking London 2019 conference on 16 May will bring together practitioners from across the financial services industry to explore what the AI revolution means for banks - and what financial institutions need to do in the short, medium and longer terms to benefit from AI, and ensure their customers do so as well.