Broadridge launches OpsGPT for T+1 post-trade operations

Rick Steves

To adapt to this changing landscape, there is a pressing need for automation of manual, time-consuming tasks. Firms are reevaluating their legacy systems, emphasizing Straight Through Processing (STP), and incorporating emerging technologies like Generative AI (GenAI) and Large Language Models (LLM). These technologies have the potential to augment, automate, and de-risk post-trade functions, offering improvements in productivity, scalability, and risk management.

Broadridge has unveiled OpsGPT, a cutting-edge capability for operations users, analysts, and management teams, aiming to revolutionize post-trade operations in a T+1 environment.

The GenAI-powered OpsGPT employs Generative AI (GenAI) and Large Language Model (LLM) technology, utilizing transactions, settlements, and positions data to offer real-time visibility. This facilitates faster fails resolution, enables research on next best actions, and prioritizes key risk items through a user-friendly interface.

T+1 settlement in North America by May 2024

The trading industry is undergoing significant challenges and transformations, particularly with the impending shift towards T+1 settlement cycles in North America by May 2024. This accelerated settlement timeline, influenced by factors such as efficiency demands, increased trading velocity, and evolving work methodologies, is placing considerable strain on legacy technology and operational models within firms.

To adapt to this changing landscape, there is a pressing need for automation of manual, time-consuming tasks. Firms are reevaluating their legacy systems, emphasizing Straight Through Processing (STP), and incorporating emerging technologies like Generative AI (GenAI) and Large Language Models (LLM). These technologies have the potential to augment, automate, and de-risk post-trade functions, offering improvements in productivity, scalability, and risk management.

Generative AI, in particular, is expected to play a crucial role in offsetting operational risks and costs associated with T+1 settlement. Preliminary estimates suggest that its application could enhance operational efficiency by up to 50%, addressing the challenges posed by shortened settlement cycles. The ability of GenAI to leverage natural language facilitates deeper insights, enabling users to predict and integrate recommended actions into operational workflows.

Firms that successfully leverage these technologies stand to unlock not only immediate value in meeting T+1 requirements but also the potential for broader, long-term transformations in their operational functions. Broadridge, as an industry player, is actively innovating with architectural design patterns that incorporate GenAI responsibly, emphasizing compliance, safety controls, data privacy, and entitlement-driven data access.

Key areas of focus for the industry include meeting regulatory requirements for reduced settlement cycles, continuously enhancing operational productivity, adapting to the changing workforce landscape, accelerating product development, and ensuring seamless data accessibility. Firms that prioritize these aspects, adopting technologies like GenAI and LLM, are better positioned to navigate the challenges and drive transformative changes in the trading sector.

 “Leveraging automation to reduce manual intervention”

OpsGPT addresses challenges arising from reduced settlement cycles, the pursuit of operational efficiency, and escalating trading velocity. Vijay Mayadas, President of Capital Markets at Broadridge, highlighted its role as a “GenAI-powered-copilot” simplifying and optimizing trading operations.

“OpsGPT is the GenAI-powered-copilot that will simplify and optimize trading operations, generating a step change in productivity for operations teams, creating post-trade trade lifecycle event transparency and empowering users to swiftly remediate, reduce, and prevent risks. Leveraging automation to reduce manual intervention through OpsGPT will allow clients to operate at peak efficiency, despite changing regulations and market complexities.”

Trained on curated and harmonized data from Broadridge’s global multi-asset post-trade systems, handling $10 trillion in daily trades, OpsGPT offers an AI solution that can be quickly deployed for clients. The platform streamlines access, connectivity, and data understanding across multiple asset classes, enhancing overall operations productivity.

Broadridge’s AI platform, as described in their whitepaper “Efficiency Unleashed: Capital Markets Operations Reimagined with Generative AI,” provides flexibility for clients to choose models based on specific use cases and requirements. The consistent and scalable API interface enables easy switching between different models, aligning with client needs and risk governance processes.

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