Technology

It was 2020, and there were countless stories of young investors becoming millionaires overnight by investing in cryptocurrencies like Bitcoin. I didn’t want to miss out, so I decided to invest a modest amount of 2500 euros.

Curiosity

The possibility of becoming a millionaire was enticing, but I also saw this as a way to educate myself about a ‘new’ concept called blockchain. This technology was the foundation of cryptocurrencies and was set to transform countless industries.

Verena Ross, the chair of the European Securities and Markets Authority, Esma, has laid out a robust European framework for improving financial markets, boosting trust and transparency. But in a speech in Germany on Monday, she also identified the industry’s sluggish response to digitalisation and “greenwashing” as barriers to progress.

Globally active Accelex has set up in Luxembourg to sell its next-generation software as a service solution aimed exclusively at private markets because of the country’s leadership in private assets. The UK-headquartered company sees itself playing a key role in the maturation of the private assets market, including through the increased availability of such funds to retail investor clientele.

Client experience is becoming a more important competitive battleground in asset management, particularly for wealth managers who face pressure to meet the needs of younger, digital native investors. Nearly 40% of asset managers in the survey said that the client experience was a key point of differentiation versus their competitors, up from just 7% a year earlier, according to a study released this week.

A stellar performance of a small number of listed tech companies is largely responsible for the recent recovery in public stock markets. For Ben Prade, partner at international tech investor GP Bullhound, it remains to be seen whether this can serve as a full market revival. Nevertheless, he is upbeat about the prospects for private tech investments, saying 2023 can become “one of those really great vintages”.

Researchers at the University of Florida have discovered a significant correlation between ChatGPT’s assessment of headlines, and the subsequent daily returns of the stocks studied.

The researchers used ChatGPT to indicate whether a particular headline contained good, bad or irrelevant news for companies’ stock prices.  The study shows a positive correlation between ChatGPT’s sentiment analysis, and subsequent daily stock market returns.

A year of negative crypto-asset industry headlines has left interest in the asset class undiminished, according to a survey of 127 industry practitioners released on Thursday. Respondents agreed crypto assets will be important for the future of Luxembourg’s asset management industry.  Local crypto actors attribute crypto-asset failures elsewhere to poor governance and due diligence failures but, all the same, are happy to see increased regulatory activity in this area. 

Luxembourg’s banking sector is asking data protection and financial services authorities to provide more clarity on the use of generative AI tools like ChatGPT. Presenting its survey on the use of ChatGPT, bank sector group ABBL on Thursday said 38 per cent of bank employees are currently blocked from using such tools, which is significantly more than the average of 24 percent for the sector as a whole.

Luxembourg-based fund administrator Alter Domus said on Thursday that it has acquired the Solvas suite of business IT solutions from Deloitte Touche LLP, a subsidiary of Deloitte LLP, for an undisclosed amount.

Although usage of artificial intelligence in the Luxembourg financial sector is currently fairly limited and still at an early stage, the grand duchy is set for wider adoption of artificial intelligence in the near future, according to a survey carried out by BCL, the central bank, and financial supervisor CSSF.