Deep Market Making, Inc. (Deep MM) has introduced an artificial intelligence (AI) model aimed at transforming the US corporate bond trading landscape. This innovation targets the $9 trillion annually traded US Corporate Bond Market, offering traders and financial professionals highly accurate predictions of trade fill probabilities at various price levels. The AI model, accessible through a user-friendly interface, automates several critical tasks such as generating runs, conducting portfolio risk analysis, and performing pre-trade execution analysis, thereby streamlining operations across the corporate bond industry.
The development of this AI model is the culmination of seven years of research and development, incorporating data from sources like FINRA TRACE, US treasuries, bond ETFs, equity ETFs, and S&P ratings. Nathan Powell, CEO of Deep Market Making, highlighted the model's exceptional accuracy, which has already impressed early adopters. A trader from a prominent Wall Street riskless market maker reported the model's ability to accurately price even less-liquid bonds, showcasing its potential to provide a significant informational advantage in the market.
Beyond corporate bonds, Deep MM specializes in creating Large Event Models (LEMs) that predict future event probabilities, offering foundational AI capabilities applicable across various domains. The introduction of this AI-powered analytics solution could significantly enhance market performance and transparency by simplifying complex data integration and providing instantaneous, actionable insights.
The potential impact of this technology on the corporate bond trading landscape is profound. By improving price discovery and liquidity assessment, especially for less frequently traded bonds, the AI model could lead to more efficient capital allocation. Furthermore, the automation of traditional manual tasks may reshape job roles within the fixed income sector, allowing professionals to focus on more complex, value-added activities.
For more information, visit https://www.deepmarketmaking.com.
