The recent introduction of large language models, including ChatGPT and Bard, has highlighted the benefits and challenges that open APIs offer trading firms and vendors. While the release of OpenAI’s ChatGPT in November 2022 has sparked the discussion around generative AI and the use of large language models, bank compliance departments remain cautious. Nonetheless, the partnership between Glue42 and Broadridge has brought together the best of agency trading and market-making solutions. Industry experts are divided on the adoption of new technology, with some hesitant to fully embrace distributed-ledger technology. Moreover, as fixed income markets become increasingly electronic, firms will have to bear greater connectivity costs to connect to numerous trading venues. The industry faces pressure to adopt new technology, and the key challenge remains explainability.
New Chatbots Highlight Limitations of Legacy API Development
The market debut of large language models, such as ChatGPT and Bard, has made trading firms and vendors realize the advantages and difficulties that open APIs offer. The recent release of OpenAI’s ChatGPT has stimulated the discussion around generative AI and the usage of large language models, particularly in capital markets.
Despite the initial hype, bank compliance departments are not as enthusiastic about the new chatbots. OpenAI released ChatGPT as a research preview on November 30, 2022, and since then, its popularity has not waned. The partnership between Glue42 and Broadridge will combine the agency trading and market-making solutions to offer the best components.
During FIA Boca 2023, industry experts shared their views on the adoption of new technology. While some are hesitant to adopt distributed-ledger technology on a large scale, others believe that explainability is the key challenge.
As fixed income markets become more electronic, firms will have to bear greater connectivity costs to connect to numerous trading venues. The industry is facing pressure to accept new technology, as demonstrated by a Dutch court case.
In conclusion, the market launch of large language models has brought the limitations of legacy API development to the forefront. Despite the challenges, the advantages of using open APIs are undeniable, as demonstrated by the Glue42-Broadridge partnership. The industry’s readiness to adopt new technology, however, remains a key challenge.
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