The new AI-based electronic trading algorithm helps improve trading results and insights for clients in a measurable and explainable way.
RBC Capital Markets announced the launch of Aiden® Arrival, the second algorithm on the firm’s AI-based electronic trading platform. Aiden® Arrival builds on the success of the Aiden® platform’s first solution, a volume-weighted average price (VWAP) algorithm, to reduce arrival price slippage and offer an expanded trading action set that enhances the platform’s flexibility and control over the execution trajectory.
“Since launching the Aiden® platform in 2020, we partnered closely with clients to develop a more holistic tool for primary benchmarks and solve for greater simplicity,” says Bobby Grubert, Head of Digital Solutions & Client Insights at RBC Capital Markets. “The launch of Aiden® Arrival signals an important milestone in the expansion of our innovative Aiden® trading platform. Together with Aiden® VWAP, this is just the beginning of the full opportunity for clients to have better performing trading tools.”
The Aiden® platform was developed in a collaborative effort by RBC Capital Markets and Borealis AI, a world-class AI research and development center created by RBC. The platform uses the computational power of deep reinforcement learning in its pursuit of improved trading results and insights for clients.
“When RBC Capital Markets brought Aiden® platform to market for our clients, it was a big scientific milestone that demonstrated how a brand-new AI technology could succeed in extremely complex environments,” says Dr. Foteini Agrafioti, Chief Science Officer at RBC and Head of Borealis AI. “One of the key factors in developing this game-changing product successfully at RBC was our early investment in research and development capabilities, creating an environment where top scientists, engineers, experts, and practitioners from the Capital Markets business were able to work side by side to bring this game-changing product to life.”
Aiden® Arrival builds on this work by exploring new trading relationships within the prevailing market conditions and guardrails by continuously assessing market information to dynamically control multiple aspects of every action throughout the order lifecycle. The algorithm uses deep reinforcement learning to gain experience in real-time, learning how to trade better over hundreds of thousands of decisions.
“We are at the forefront of leveraging reinforcement learning technology in a responsible fashion to benefit clients,” says Jas Sandhu, Global Head of Agency Electronic Solutions, RBC Capital Markets. “Aiden® Arrival leverages more than 300 data inputs, combinations of actions, and post-execution optimization to solve for the arrival price challenge and reduce slippage.”
The Aiden® trading platform is part of a broader long-term strategy to deliver the potential of AI to clients. “RBC is reimagining the future of financial services, with a focus on anticipating client needs and solving for them in innovative ways,” Grubert added. “With significant investment in new technologies, including AI, we’re making tremendous strides to bring more insight and value to clients and communities to help power their ambitions.”
We are at the forefront of leveraging reinforcement learning technology in a responsible fashion to benefit clients.
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About Borealis AI
Borealis AI is a world-class AI research center backed by RBC. Recognized for scientific excellence, Borealis AI uses the latest in machine learning (ML) capabilities to solve challenging problems in the financial industry. Led by award-winning inventor and entrepreneur Foteini Agrafioti, and with top North American scientists and engineers, Borealis AI is at the core of the bank’s innovation strategy and benefits from RBC’s scale, data, and trusted brand. With a focus on time series modelling, applying ML to financial markets, and responsible AI, Borealis AI is committed to building solutions using machine learning and artificial intelligence that will transform the way individuals manage their finances and their futures. As part of its commitment to advancing the development of responsible AI and ML, Borealis AI developed RESPECT AI, an online hub that brings open-source research code, tutorials, academic research and lectures to the AI community, helping to make ethical AI available to all. For more information, please see borealisai.com.