This Week: Confluence Technologies, Genesis, LexisNexis, and more

Confluence Technologies looks to AI for reconciliation challenges

Investment management technology provider Confluence Technologies has rolled out a new product from its innovation lab that leverages AI to solve challenges stemming from the Securities and Exchange Commission’s (SEC’s) Tailored Shareholder Reports (TSRs).

The new tool, Confluence Unity Rex, mines and pinpoints discrepancies in language and numeric information between financial reports and the TSR. TSRs are two- to four-page documents that require mutual funds and exchange-traded funds to prepare and transmit streamlined annual and semi-annual shareholder reports that highlight key information to investors and that are tagged using Inline XBRL structured data language. “The challenge we saw here is the consistency of data between those two documents (TSR and annual reports); if one system is producing the annual statement and another system or another kind of operational procedures is producing this consolidated report, how do you ensure accuracy between the two?” says Todd Moyer, president and COO of Confluence Technologies.

With the TSR rule, manual reconciliation is nearly impossible, as firms must do this within a 60-day window. Confluence estimates it would take a typical manager with thousands of share classes and hundreds of data points per class hundreds of business days to reconcile the reports each time. With Rex, the large language model (LLM)-enabled reconciliation only takes minutes or even seconds. Confluence Unity Rex also has an interrogatable model, which enables clients to ask questions about it to validate and source information.

“I think in the regulatory and investor communication space, you’re going to see massive improvements from generative AI and large language models,” says Chris Evans, CTO at Confluence. “This is a great, low-risk, high-return opportunity.”

Quantitative Brokers, Genesis Global partner on algorithm monitoring solution

Quantitative Brokers (QB), a provider of advanced execution algorithms and data-driven analytics for futures, options, and OTC fixed-income markets, and Genesis Global, a low-code application development platform vendor, announced a strategic partnership that will look to advance algo transparency, enhance trader productivity, and deliver a customized algorithm performance monitoring platform tailored to QB’s clients’ unique requirements.

The new order monitoring system, built in partnership with Genesis, will further elevate QB’s real-time management and proactive support services for thousands of client orders worldwide. The flexible, customizable system will be central to QB’s client support and trading teams to visualize data on trade execution performance across asset classes, including futures, options, and US Treasuries. The system will issue real-time alerts on algorithmic performance relative to client benchmark parameters and provide rich analytics to best interpret algorithm behavior.

LexisNexis Risk Solutions rolls out RiskNarrative platform

LexisNexis Risk Solutions has launched an end-to-end customer lifecycle management platform to help businesses integrate multiple information sources to make better risk decisions and provide smoother customer journeys. LexisNexis RiskNarrative leverages automation and decisioning technology to provide a sophisticated, configurable and accessible financial crime lifecycle management solution.

The LexisNexis RiskNarrative orchestration platform aims to solve costly challenges caused by siloed operations by unifying multiple customer onboarding, compliance and risk-based workflows within a single API and platform environment.

VersiFi announces seed funding and partnership with Hunting Hill Group

VersiFi, a prime services platform for digital assets, is partnering with the Hunting Hill Group (HHG), a digital asset-focused investment firm. The collaboration will provide VersiFi with strategic guidance and support, enabling the new firm to effectively leverage its skills and capabilities to seize on emerging trends and drive product innovations. HHG confirmed that it has provided seed funding and anticipates that it will become an active participant on the VersiFi platform via Hunting Hill Global Capital, an SEC-registered investment advisor managing strategies across asset classes including cryptocurrencies and financial instruments that reference digital assets.

VersiFi’s platform anticipates going live in Q3 2023 with a plug-and-trade offering that aims to bring together an ecosystem of trusted and regulated exchanges, liquidity providers, custodians, and lenders to give clients a full-service, regulation-compliant solution that streamlines the trading lifecycle and mitigates single-firm counterparty risk.

Canoe Intelligence expands partner program in Emea

Canoe Intelligence, a provider of alternative investment-related services for institutional investors and wealth managers, has added Apliqo, a software provider designing solutions for advanced performance management and business planning, as the latest European member of the Canoe Partner Program, an ecosystem of technology and service providers that advances alternative investment document collection and data management for the industry.

Based in Zurich, Apliqo was founded in 2013 and offers an analytics platform for private market investors that is used by thousands globally for reporting, budgeting, and planning.

Leveraging Canoe’s open APIs, Apliqo pulls documents and data collected, categorized, extracted, and validated by Canoe into its system for aggregation, analysis, and reporting. Data from Canoe will power downstream portfolio management and reporting in Apliqo’s system. Connectivity between the two platforms will benefit mutual clients, enabling them to further streamline their alternative investment processing workflow and free up time to perform more value-added tasks.

Resistant AI extends Series A to $27.6 million

Resistant AI, an artificial intelligence and machine learning security company that protects financial services from financial crime, has increased its Series A funding to $27.6 million, having raised an additional $11 million investment from Notion Capital. This adds to the existing funding from investors including GV, Index Ventures, Credo Ventures, and Seedcamp.

The new investment builds on Resistant AI’s expansion of its product, team, and geographical presence to meet the growing demand from financial institutions to protect their onboarding and transaction systems from malicious attacks. The company’s solutions look for anomalies in documents, transactions, and behaviors to provide a 360-degree view of each customer, which can up to double the number of threats detected.