Artificial intelligence (AI) is transforming the financial industry, and the derivatives market is no exception. A new whitepaper from ISDA Future Leaders in Derivatives (IFLD), a professional development program for emerging leaders in the derivatives market, explores the potential use of generative artificial intelligence (GenAI) in the derivatives markets. GenAI is a branch of AI that can create novel data, such as text, images, audio and video, based on existing data and algorithms.

The whitepaper, “GenAI in the Derivatives Market: a Future Perspective”, was developed by the third cohort of IFLD participants, who began working together in October 2023. The 38 individuals in the group represent buy- and sell-side institutions, law firms and service providers from around the world, including Robyn Llewellyn from Mayer Brown. After being selected for the IFLD program, they were asked to engage with stakeholders, develop positions and produce a whitepaper on the topic of GenAI in the derivatives market. They were also given access to ISDA’s training materials, resources and staff expertise to support the project and their own professional development.

The whitepaper identifies a range of potential use cases for GenAI in the derivatives market, including document creation, market insight and risk profiling. It also explores regulatory issues in key jurisdictions and addresses the challenges and risks associated with the use of GenAI. The paper concludes with a set of recommendations for stakeholders, such as investing in talent development, fostering collaboration and knowledge sharing with technology providers, prioritising ethical AI principles and engaging with policymakers to promote an appropriate regulatory framework.

Mayer Brown is proud to have contributed to this whitepaper, which provides a valuable insight into the future development of GenAI in the derivatives market. We congratulate the IFLD participants for their achievements and look forward to continuing our involvement in the IFLD program and supporting ISDA’s initiatives to make the global derivatives markets safer and more efficient.

*GenAI assisted in the preparation of this blog post.

Photo of Robyn Llewellyn Robyn Llewellyn

Robyn Llewellyn is a senior associate in the Banking & Finance practice of the London office. His practice comprises structured finance transactions for investment banks and corporates, and focuses in particular on securitisations, structured products and bespoke structured lending transactions.

Robyn joined Mayer…

Robyn Llewellyn is a senior associate in the Banking & Finance practice of the London office. His practice comprises structured finance transactions for investment banks and corporates, and focuses in particular on securitisations, structured products and bespoke structured lending transactions.

Robyn joined Mayer Brown in 2019 having previously trained and worked at a magic circle law firm. Robyn has also worked in structuring roles at an investment bank and investment fund.

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