Chicago-based custody giant and bank Northern Trust announced today it has enhanced its Foreign Exchange (FX) currency management solutions with machine learning models designed to enable greater oversight of thousands of daily data points and help reduce risk throughout the currency management life cycle.
The solution has been developed in conjunction with Northern Trust’s strategic partner Lumint Corporation.
Based in Boston, Lumint is a privately held corporation founded in 2014 to provide comprehensive currency management services to institutional investors by delivering process excellence, scalability and real time performance Analytics through a highly automated proprietary platform.
The advanced technology utilized by the Robotic Oversight System (ROSY) for Northern Trust, systematically scans newly arriving, anonymized data to identify anomalies across multi-dimensional data sets. It is built on machine learning models developed by Lumint using a cloud platform that allows for highly efficient data processing.
“In a data-intensive business, ROSY acts like an additional member of the team working around the clock to find and flag anomalies. The use of machine learning to detect data outliers enables us to provide increasingly robust and intuitive solutions to enhance our oversight and Risk Management , which can be particularly important in volatile markets,” Andy Lemon, head of currency management, Northern Trust, said.
“Northern Trust’s deployment of ROSY amplifies the scalability of its already highly automated currency hedging operation; especially for the more sophisticated products such as look-through hedging offered to its global clients. We look forward to continuing to collaborate with them as the demand for scalable and flexible currency management solutions moves to the next level,” Alex Dunegan, CEO, Lumint, added.
Partners since 2018
Northern Trust announced a strategic partnership with Lumint in 2018 to drive innovation in currency hedging, including comprehensive transparency reporting and analytics to meet the evolving needs of asset owners and asset managers.
Northern Trust’s global currency management suite comprises portfolio overlay, share class hedging and look through hedging solutions to help mitigate currency volatility, while actively supporting investment manager distribution strategies.
