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Agents Trade Decision and Risk Intelligence Agent
Trade Decision and Risk Intelligence Agent Icon

Trade Decision and Risk Intelligence Agent

Applies risk scoring and policy interpretation to evaluate trade requests with consistent, explainable, and compliance-aligned decision intelligence.

MTrade risk assessment and decision-making traditionally depend on manual interpretation of complex regulatory requirements, policy documents, and historical trading patterns. Teams must aggregate information from multiple internal and external sources to evaluate trade requests, leading to delays, inconsistencies, and increased compliance exposure—especially as trade volumes scale and regulations evolve.

The Trade Decision & Risk Intelligence Agent consolidates these activities into a unified decision-support layer by combining policy interpretation, historical pattern analysis, predictive risk scoring, and real-time compliance assessment. Drawing on structured data such as trade requests, historical outcomes, and compliance logs, as well as unstructured sources like regulatory bulletins, policy documents, and trade narratives, the agent standardizes and analyzes trade information against up-to-date regulatory and policy rules. It calculates risk and compliance scores using predictive models and rule-based evaluations, identifies policy or regulatory deviations, and synthesizes a rationale that explains every score and determination.

By delivering consistent, explainable insights and streamlining the evaluation of trade requests, the agent reduces manual bottlenecks, enforces policy and regulatory requirements with precision, and accelerates decision cycles. Standard or low-risk requests can be green-flagged for rapid progression, while higher-risk or exceptional cases are escalated with clear contextual summaries. Organizations benefit from improved throughput, reduced operational effort, and stronger compliance governance supported by high-quality decision intelligence.

Accuracy
TBD

Speed
TBD

Input Data Set

Sample of data set required for Trade Decision and Risk Intelligence Agent:

Trade Execution Request: SXF-98345


Requesting Trader: Brenda Wallace
Trade Desk: Americas - Commodities
Submission Date: 2024-10-23




Trade Details


    

  • Trade ID: SXF-98345
    • 

  • Product: Soy Futures (SXF)
    • 

  • Counterparty: Quantum Dynamics S.A.
    • 

  • Direction: BUY
    • 

  • Notional Value (USD): $15,500,000
    • 

  • Quantity (Contracts): 2,500
    • 

  • Settlement Date: 2025-03-15
    • 

  • Origin Jurisdiction: Brazil
    • 





Trader's Narrative & Justification


We are capitalizing on favorable market conditions following the latest agricultural report. The proposed volume is approximately 20% higher than our standard ticket size with Quantum Dynamics, but their recent performance and our strategic goal to increase market share in this sector justify the exception. This trade is intended to secure supply ahead of anticipated price increases in Q1 next year. We have a strong historical relationship with Quantum Dynamics and foresee no settlement issues.

Deliverable Example

Sample output delivered by the Trade Decision and Risk Intelligence Agent:

Trade Decision & Risk Intelligence Evaluation Report


Trade Request: InnovateCorp – SXF_98345

Date: January 14, 2025  




1. Summary Decision


⚠ Status: Requires Review


The trade cannot proceed due to identified compliance gaps, medium-risk scoring across multiple dimensions, and exposure limit deviations.

A notification has been sent to the submitting sales executive detailing required next steps.




2. Risk & Compliance Scores






Dimension
Score
Rating
Key Drivers






Regulatory Compliance
0.78
Medium Risk
Cross-border attestation missing; jurisdiction-sensitive disclosures required




Counterparty Risk
0.66
Moderate Exposure
Concentration increasing; multiple unsettled derivative positions




Market Risk
0.52
Low–Moderate
Notional aligns with current volatility thresholds




Policy Adherence
0.61
Partially Compliant
SXF exposure limit exceeded by 12%




Composite Score
0.64
Medium Risk
Weighted analysis of market, counterparty, and policy criteria






Interpretation:

Risk scoring indicates that the trade is not eligible for straight-through evaluation and requires human review by a Trade Risk Officer.




3. Automated Findings


3.1 Regulatory Interpretation & Compliance Gaps


Using retrieval-augmented LLM reasoning, the agent extracted relevant cross-border and derivative-compliance conditions:


    

  • Missing Cross-Border Trading Attestation for Canada (NI 31-103 requirement).  
    • 

  • No attached pre-trade disclosures for derivative index products.  
    • 

  • Missing explicit confirmation of client suitability approval on record.
    • 





3.2 Internal Policy & Exposure Validation


Key internal checks revealed:


    

  • SXF product exposure for InnovateCorp exceeds policy limits by 12%.  
    • 

  • Prior exposure-increase request was denied pending stability review.  
    • 

  • Product classification validated successfully; no prohibited instrument flags triggered.
    • 





3.3 Counterparty Historical Risk Patterns


LLM analysis of historical trade behavior found:


    

  • Three unsettled derivative positions outstanding.  
    • 

  • Higher adjustment requests vs. historical baseline.  
    • 

  • No compliance breaches in past 12 months, though margin-call frequency has risen.
    • 





4. Required Documentation Before Proceeding


The following items must be submitted for the trade to advance:


    

  1. Cross-Border Trading Attestation (Canada)  
    2. 

  2. Client Suitability Confirmation for index derivatives  
    3. 

  3. Pre-Trade Disclosures Package  
    4. 

  4. Manager Approval for exposure-limit override  
    5. 



These requirements have been automatically included in the notification sent to the requester.




5. Recommended Actions


    

  • Forward the case to the assigned Trade Risk Officer for manual review and decisioning.  
    • 

  • Submit missing documentation and re-trigger scoring afterward.  
    • 

  • Generate exposure-limit override justification (draft prepared internally).  
    • 

  • Operations teams must hold downstream booking until clearance is obtained.
    • 





6. Audit-Ready Explanation




“Trade SXF_98345 for InnovateCorp was flagged due to partial non-compliance with internal exposure thresholds, missing jurisdiction-required attestations under NI 31-103, and emerging counterparty exposure trends. Composite risk scoring indicates a medium-risk profile unsuitable for automatic straight-through evaluation. Additional documentation and approvals are required before the trade can advance.”






7. Notification Summary


Email Notifications Sent To:


    

  • Submitting Sales Executive  
    • 

  • Assigned Trade Risk Officer  
    • 

  • Compliance Intake Mailbox  
    • 



Included in Notification:


    

  • Summary of findings  
    • 

  • Missing documentation  
    • 

  • Risk and compliance scoring breakdown  
    • 

  • Required approvals  
    • 

  • Next-step instructions  
    •

Opportunity to impact key functional area KPIs

Risk Reduction
Regulatory Compliance
Process Cycle Time

By providing predictive risk scores and explainable rationales for every trade, the agent empowers teams to make more informed and consistent decisions.

Enhance Decision Intelligence
  • Generate predictive risk and compliance scores for every trade request.
  • Synthesize clear, explainable rationales for all risk determinations and scores.
  • Analyze historical trade outcomes to identify emerging risk patterns.
Proactively Identify Deviations
  • Flag trade requests that deviate from internal policies in real-time.
  • Cross-reference trade details against a live repository of regulatory rules.
  • Escalate high-risk trades with contextual summaries for expert review.

Ensures adherence to evolving regulations by automatically interpreting policy documents and screening every trade against up-to-date compliance rules and bulletins.

Automate Compliance Checks
  • Interpret and apply complex regulatory requirements to individual trade requests.
  • Continuously monitor and ingest updates from regulatory bulletins and sources.
  • Automatically screen every trade for potential compliance breaches.
Maintain an Auditable Decision Trail
  • Generate detailed, time-stamped logs for each decision and its rationale.
  • Centralize all compliance-related data and assessments for easy retrieval.
  • Produce reports linking decisions directly to specific policy or rule clauses.

By automating data aggregation and instantly approving low-risk trades, the agent eliminates manual bottlenecks and accelerates the entire evaluation process from hours to minutes.

Accelerate Trade Evaluation
  • Automate the aggregation and consolidation of data from multiple disparate sources.
  • Standardize the initial intake and analysis of all trade requests.
  • Instantly evaluate and green-flag standard, low-risk trade requests for approval.
Prioritize High-Risk Cases
  • Automatically route complex or high-risk cases to the appropriate oversight team.
  • Segment trade queues by risk score to focus manual effort effectively.
  • Generate alerts for trades requiring immediate human intervention.

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