This segment of the Market Structure Wave features Rob Hegarty of the Hegarty Group and Paul Lashmet of North Castle Integration. In this video, they discuss the complexities of Artificial Intelligence (AI) and Machine Learning (ML). Mr. Hegarty further explains the stage where AI-ML development is today, and although it is in the "early innings," he expects rapid development because of its potential payoff. This conversation provides an inside look at the answers to many of the questions that investment professionals are asking, including use cases and ROI.
“Machine learning is a natural next step of algorithmic trading because machine learning identifies patterns and behaviors in historical data and learns from it,” said Robert Hegarty, managing partner, Hegarty Group, a consultancy focusing on financial services, technology, data, and AI/machine learning.
“This reflects the convergence of cloud capability, the proliferation of data and the advances in AI and machine learning models,” said Hegarty.
“The financial markets industry will see AI and machine learning spread rapidly from the investment decisioning process, risk management, and customer analytics to the rest of the enterprise in 2020,” said Rob Hegarty. “In addition, ‘AI for AI’s sake’ disappears in 2020. The industry has moved from conducting AI experiments into the realm of providing real, measurable business value quickly, where executives and managers are demanding to know the ROI of their firm’s AI initiatives.“
”Firms are at varying stages in the migration to a multi-asset class environment – some are just starting, some are fully multi-asset,” said Rob Hegarty, Managing Partner at Hegarty Group and roundtable moderator. As drivers of the migration to multi-asset trading, Hegarty cited increasing cost pressures; opportunities for collaboration; the availability and ubiquity of data; the rise of quant resulting in cross-asset strategies; advancements in available technologies; and new asset classes such as cryptoc
“It’s important to remember that this isn’t just a bank or a custodian acquiring an OMS, this is a much bigger deal than that because this is a large-scale, full-service asset servicer acquiring an integrated asset management platform,” Hegarty says. “To even put CRD in the OMS-only bracket isn’t fair; I think many people know it’s bigger than that but it's been getting characterized as a bank buying an OMS and this is not that.”
Read my views on how the buy side can turn the immense technological disruption occurring in their industry to their advantage. Whether it’s harnessing the vast amount of structured, unstructured and alternative data coming at us every day, taking advantage of the power of AI and Machine Learning, deploying practical uses of RPA, or understanding and responding to the disruptive forces of block chain and emerging FinTech players, the investment industry is poised for change unlike any other time in its history.
FEBRUARY 25-27, 2020 MIAMI, FL
Rob Hegarty presented at the Automating Alpha event hosted by Institutional Investor Financial Technology Forum and US Institute, discussing “The Practical Application of AI and Machine Learning for Investment Managers“
The discussion -- in front of an audience of Chief Investment Officers and Chief Information Officers -- included how buy side firms are using AI to improve efficiency, manage risk, and generate alpha. And when AI is the right answer to solve a business problem — and when it’s not.
DECEMBER 3, 2019 NEW YORK, NY
Following the Day 1 Keynote, Rob presented on the importance of the 4th Industrial Revolution (Intelligence) and the speed of adoption at the 2019 WatersUSA event.
He followed with a discussion of the rapid adoption of predictive model development AND deployment, including the early innings of the management, monitoring, and maintenance of machine learning models (a.k.a. ML Ops). Finally, he walked through dozens of AI use cases in production today across the buy side, sell side, exchanges, asset servicing, private equity and venture capital industries.
NOVEMBER 21, 2019 NEW YORK, NY
Rob Hegarty - with Element22 - co-hosted and moderated 25+ Chief Data Officers from the largest global banks at an executive dinner roundtable at PUBLIC Hotel in NYC.
He lead the discussion and lively debate on “AI Do’s and Don’ts”, with topics including data governance, making AI real, data quality, data prep, data science democratization, how to drive AI adoption in their enterprise, and more.
NOVEMBER 6, 2019 NEW YORK, NY
Rob Hegarty presented to 150+ of BNY Mellon's Asset Servicing clients along with BNY's senior executives at the BNY Fintech Connect Forum.
Rob presented on AI and the 4th Industrial Revolution:
He also presented on the top use cases for AI in Financial Services, and particularly the buy side and asset servicing.
OCTOBER 17, 2019. WASHINGTON DC
Rob Hegarty was on a panel that explored how AI and Machine Learning are changing the way global financial institutions are doing business. The panel explored the myriad ways that AI and machine learning are transforming the industry:
JUNE 18-19, 2019 BOSTON, MA
Rob Hegarty was on a panel that explored how wealth management firms can use AI, machine learning and analytics to grow their AUM.
The panel addressed topics such as:
APRIL 9-10, 2019 BOSTON, MA
Rob Hegarty is on a panel that will be exploring "How Financial Technology is Reshaping Investing."
The 2019 Ned Davis Research Investment Conference brings together the top thought leaders from the financial world to share their insights and outlook on the opportunities and pitfalls now emerging in the investment landscape. For a day and a half leading market analysts, observers, and participants will hold forth on how to choose investments and shape their portfolios after a decade-long run up in equity markets and a sea change in fixed income markets.
DECEMBER 5-7, 2018 MIAMI, FL
Rob Hegarty will be chairing the track on New Liquidity Initiatives in Equity Trading. Topics include: Buy Side Wish list for new liquidity initiatives; which new initiatives are getting traction; what are key characteristics required for new liquidity venues.
Rob will also be moderating 2 other sessions:
OCTOBER 16, 2018 NEW YORK, NY
Rob Hegarty moderated a panel exploring innovations in the financial markets. Whether in investment decision making, trading, clearing, or other corners of our industry, the financial markets are undergoing a wave of innovative transformation like we’ve never seen. From new business models, to transformative technologies like the cloud, artificial intelligence, machine learning, and block chain, the financial markets industry as we know it is forever changed. And all of this change is happening within the boundaries of a rapidly evolving regulatory regime. This panel will explore the trends driving these changes, how your firms are adapting, and what’s in store in the coming years.
OCTOBER 4, 2018 JERSEY CITY, NJ
For DTCC's Institutional Trade Processing Advisory Council, a member group of senior technology and operations leaders from buy side, sell side and custodian firms, Rob Hegarty is leading a discussion on the consolidation occurring in the industry. He will present on the ongoing trend of back and middle-office processing and administration firms moving into the front office through acquisition, in a bid to offer a comprehensive full trade lifecycle service for capital markets firms. He will discuss and present on the trends, deals, players, and future of the industry resulting from this consolidation.
SEPTEMBER 18, 2018 BOSTON, MA
Rob Hegarty led a roundtable discussion of buy side trading and technology leaders on the challenges and opportunities of multi-asset class trading. Topics explored include: What's important for an optimized multi-asset trading desk; the role of technology in building and maintaining a multi-asset trading desk; is a siloed framework for trading desks truly a thing of the past; where do emerging technologies like AI, machine learning, blockchain, cloud, big data, etc.) fit on the multi-asset trading desk of today -- and tomorrow.
SEPTEMBER 14, 2018 BOSTON, MA
It's back! And bigger than last year! One of the most informative, content-rich and valuable FinTech events in the country.
Rob Hegarty moderated the closing panel for Boston FinTech Week, "The Future of FinTech" Sponsored by Babson College's Stephen D. Cutler Center for Investments and Finance, the panel discussed the latest trends and predictions for the future in finance technology. Topics included: how financial businesses are changing the way they adapt to technology, collaboration with startups, data privacy issues, and opportunities across markets.
MAY 9-11, 2018 NEW ORLEANS, LA
Rob Hegarty chaired and moderated IdeaLabs, TraderForum’s annual look at how artificial intelligence, predictive analytics and advanced data visualization are revolutionizing the investment process. TraderForum’s buy side head trader members will hear “elevator pitches” from a group of financial technology startups who are bringing these technologies to bear on trading, portfolio construction and research.
APRIL 22-25, 2018 BOCA RATON, FL
Rob Hegarty moderated a panel “Reaping the Benefits of Technology Disruption” at BNY/Eagle Engage 2018. The panel addressed how to harness the vast amount of data coming at us every day, take advantage of the power of AI and Machine Learning, deploy practical uses of RPA, and how they're responding to the disruptive forces of emerging FinTech players.
APRIL 6, 2018 BOSTON, MA
Rob Hegarty presented "FinTech Trends at the Intersection of Financial Markets, Technology, and Data" to the Boston Asset Management CIO Roundtable. The presentation and discussion covered the major trends defining the future of investment management, and how emerging technologies and the evolution of data are dramatically changing the industry.
JANUARY 19, 2018 MIAMI, FL
Rob Hegarty was a panelist on "Foreign Exchange: New Regulation, New Players, New Structure" at Institutional Investor's Trader Forum -- a private association of Head Traders at the world's leading buy side firms. The panel debated how FX market participants are facing new waves of regulation, including the new code of conduct and MiFID II.