Unlock Proprietary Insights with HSBC AI Markets
HSBC is streamlining workflows and boosting efficiency for itself and its clients with HSBC AI Markets, which combines proprietary FX data, analytics and execution in a single platform.
Artificial intelligence has long promised to reshape financial markets. From the early days of algorithmic trading to today’s large language models, each wave of technology has promised sharper insight and reduced risk. Banks, hedge funds and fintechs are all racing to harness AI for trading and client services, with predictive analytics, natural language chatbots and automated execution crowding onto already cluttered desktops.
The reality is more nuanced. AI tools are only as good as the data they draw on, the governance frameworks that surround them and the human oversight that keeps them from providing inaccurate information in volatile markets. The opportunity is clear, but so are the limitations.
It is into this landscape that in 2023 HSBC launched HSBC AI Markets, a proprietary platform combining analytics, execution and post-trade services. Originally conceived in 2018 as an internal efficiency tool in the bank’s FX options business, it has since become integral to HSBC’s trading operations and is now used by hundreds of institutional clients, with corporate roll-out under way.
“We originally designed it to help our traders act more efficiently and execute with confidence,” said Russell Blau, HSBC’s global head of institutional FX and EM rates sales. “Once we saw the value in-house, we rolled it out externally. It has now evolved into the multi-faceted customer-facing platform it is today.”
Insight and execution
At its core, HSBC AI Markets is designed to help users interpret the market and act quickly on that information.
Through an FX-focused NLP-based chatbot, clients gain access to HSBC’s proprietary data and trading insights while the integrated Chat-2-Trade function allows them to move instantly from analysis to execution.
“The strength of HSBC AI Markets lies in its combination of ease of use and access to exclusive, high-quality data,” Blau said. “Instead of juggling multiple screens, clients can evaluate liquidity, market colour, compare historical and live prices, access volatility forecasts and assess hedging strategies – all in one place.”
Key features include liquidity dashboards, which highlight intraday market volumes and depth of book to reduce transaction costs; and event-weighting tools that capture HSBC traders’ views on expected market volatility.
“These tools give clients unique, real-time insights directly from our trading teams, enabling more informed and timely decisions,” he said.
Proprietary differentiators
The defining edge for HSBC AI Markets is its data. Unlike other analytics and market insights tools, the platform is built on HSBC’s global FX franchise and trade flow insight, giving clients access to information not available elsewhere.
“What sets us apart is the depth and reliability of our data, a product of our global footprint and FX expertise,” said Blau. “Many platforms claim to offer analytics but few are built directly on a global FX franchise like HSBC’s.”
HSBC AI Markets gives users real-time insights to consider optimal execution, liquidity profiles and whether moves are being driven by genuine flows or thin markets.
Beyond the data, HSBC has developed its own natural language processing and machine learning engines rather than relying on third parties. That approach, the bank says, gives it greater control over security, flexibility and evolution, since the platform can respond quickly to any changes in market conditions, client needs or regulatory requirements.
“This strategic investment ensures the highest standards of data security, privacy and accuracy,” said Blau. “By building the technology in-house, we retain full control over its development.”
Human oversight
HSBC is clear that HSBC AI Markets is not a substitute for human judgment. Instead, it is positioned as a digital associate, handling repetitive tasks such as analysis and pricing while leaving oversight and complex decision making to experienced traders.
“Our robust oversight and control model – built on leading eFX technologies – ensures data accuracy and integrity at every step while human expertise remains central for final approvals and complex trades,”
Blau said.
In practice, this means the system can accelerate day-to-day workflow but judgment calls in volatile markets still fall to experienced traders.
“You benefit from the perfect balance of intelligent automation and experience.”
Crowded field
HSBC is far from alone in developing NLP-based trading assistants. Major competitors and fintechs are pursuing tools to simplify workflows, compress analysis and reduce the gap between idea generation and execution.
Where HSBC differentiates itself is in depth rather than breadth. HSBC AI Markets focuses on FX but there are plans to extend the tool to equities and debt for pricing and execution. Competitors may already offer multi-asset platforms, but HSBC says its franchise gives it the strongest edge in currency markets.
Clients appear convinced. Hundreds of institutional users are active on the platform and expansion into the corporate segment is accelerating.
“We see HSBC AI Markets being embedded with clients, whether they’re executing multiple times each day or just looking for analytics,” said Blau.
In an environment in which desk space is limited and competition intense, stickiness is a major factor. By embedding itself in client workflows and building on HSBC’s FX franchise, AI Markets aims to establish and leverage that foothold.
“It’s about giving clients the confidence to act quickly and efficiently, backed by the same data and insights we use ourselves,” Blau said. “That’s what makes HSBC AI Markets different.”
