Daisuke Harada and Takuya Kusumoto from the Execution Services team in Japan, highlights the role artificial intelligence is playing in trading systems.  

After years of in-depth research and analysis, in May 2016, Nomura introduced a new stock trading system for institutional investors in Japan and for our internal traders.

In today’s difficult trading environment, we see the value in utilizing technology and artificial intelligence (AI) to improve our stock trading performance.

Our new system stores large amounts of market data and through complex algorithms, makes assessments based on the information. These predictions can determine several factors, helping traders to make decisions on optimized trading strategies.  To assist the computer generated assessments, we have employed AI, where the system will learn more on its own and enhance its prediction ability as it gains more experience. The AI can build solutions that humans would not have been able to. With the synergy of these two, we are confident that our stock trading effectiveness can be truly elevated.

The art of deep learning based on intricate data is complex. The techniques come with a complicated setup and calibration process. We have therefore begun a joint venture with HEROZ, a gaming company, whose AI has recently outwitted the world’s best Shogi (Japanese Chess) player.  We have partnered with several universities and non-financial industry professionals to understand and fully utilize the capabilities of AI. As we delve deeper into this fascinating world of AI, we will continue to look for open innovation with innovative partners and strive to offer the latest technology to service our clients.

Contact the Asia ETS Products team and read the Nikkei Asian Review's recent piece, Securities houses turn to AI.