IVM Markets – Transforming Personalized Investing, Solving the Guidance Gap in Structured Products with AI-Powered Solutions

IVM Markets stands at the forefront of transforming structured products, serving as the pioneering hub for personalized investing. It redefines the pathway to discovering and optimizing structured products for your portfolio, enabling you to tailor your investments before connecting with suppliers for issuance.

At the heart of IVM Markerts lies its cutting-edge SaaS Structured Product Suite, designed to redefine the power dynamic between issuers and distributors, placing control firmly in the hands of investors. This innovative platform empowers wealth managers, asset managers, advisors, brokers, and insurance professionals to not only find the most optimal products but also to negotiate better prices, enhance efficiency, gain valuable market insights, elevate client experiences, and propel business growth.

Volodymyr Gubskyi, CEO of IVM Markets, spoke exclusively to CIO Bulletin about how his company is leveling the playing field by revolutionizing idea generation and product optimization.

Interview highlights

Q. Can you share the story of how IVM Markets was founded? What was the original vision, and how has it evolved over time in terms of innovation and product/service offerings?

My journey towards founding IVM Markets began during my academic years at the London School of Economics, where a seminar on structured products left a lasting impression on me. Drawing from my rich experience in cross-asset derivatives at esteemed financial institutions like Merrill Lynch, RBS, and Deutsche Bank, I was compelled by a vision to revolutionize investing through a personalized approach using structured products.

This vision materialized in the co-founding of IVM Markets with Ildar Farkhshatov, a collaboration that brought together our extensive expertise. Together, we set out on a mission to empower investors, allowing them to craft personalized investments while still benefiting from the execution capabilities of bulge bracket banks.

As time unfolded, IVM Markets evolved, placing a strong emphasis on innovation in the realm of structured product offerings. A pivotal moment in this evolution was the development of our AI-driven software, meticulously designed to optimize product selection. Our goal is to consistently identify investment ideas with a higher upside and lower risk for every client, every time they invest. It's a journey marked by a commitment to personalized, empowered investing and a dedication to pushing the boundaries of what's possible in the financial landscape.

Q. What sets IVM Markets’ products/services apart from competitors in the market? How do you ensure that your offerings remain innovative and competitive over time?

IVM Markets distinguishes itself in the competitive landscape of the structured products market through its unique blend of AI-driven solutions, proprietary technology, and a steadfast commitment to a client-centric approach. The cornerstone of its differentiation lies in its innovative use of AI technology, which significantly enhances the processes of investment idea generation and product optimization. The platform's capability to rapidly price thousands of equity structured product variations in mere seconds, coupled with its unique value proposition that focuses on the preliminary stages of product design, sets it apart in the industry. This harmonious integration of cutting-edge AI, advanced technology, and a deep focus on personalization positions IVM Markets as a vanguard in its niche.

Q. IVM Markets specializes in AI-driven structured products software. Can you share your experience with AI technologies in the context of financial markets? How have you utilized AI tools to enhance idea generation and product optimization?

IVM Markets extensively employs AI in structured products, enhancing idea generation and product optimization. AI curates thematic stock/index lists for personalized investment ideas and identifies optimal investment choices considering risk profiles and market conditions. AI-based stock research provides explanations for why each stock fits the required thematic criteria, and AI conducts negative news research, adding analytic consensus targets from major banks.

The IVM structured product optimizer engines can then price thousands of variations in seconds by packaging those stocks/index into the most optimal structured products. Many people don’t consider that having 10 stocks in a thematic list means testing over 100 structured products. What if you want to vary 6 protection levels and 4 maturity variations? In total, this results in several thousand structured products to test. IVM accomplishes this in seconds and presents the resulting best ideas with higher upside and lower risk simultaneously.

Q. AI in finance raises ethical questions. How do you ensure the ethical use of AI algorithms in curating trade ideas? Can you discuss any measures or guidelines you follow to maintain ethical standards in your work?

At IVM Markets, the ethical use of AI in finance, particularly in the curation of trade ideas, is of paramount importance. The company adopts a human-centric AI approach, where the primary goal is to assist human experts in swiftly and comprehensively gathering insights and producing relevant analytics. This methodology emphasizes the significance of human oversight in AI analytics, ensuring a balance between AI curation and human decision-making.

Adherence to ethical standards and regulatory compliance is rigorously maintained, underscoring the company's commitment to responsible and ethical practices in the use of AI technology in the financial sector.

Q. How does IVM Markets foster a culture of innovation among its employees? Can you share specific programs or initiatives that encourage innovative thinking and creativity?

IVM Markets fosters a culture of innovation through a variety of strategies and initiatives. The company actively encourages diverse perspectives in brainstorming sessions, ensuring a well-rounded approach to idea generation and problem-solving. A client-centric focus is paramount, with a strong emphasis on understanding and addressing real-world problems faced by clients.

Another innovative approach employed by the company is the use of social media platforms for rapid idea testing and data collection. IVM Markets maintains a flat organizational structure, promoting open communication and the free flow of ideas across all levels, thereby fostering a collaborative and inclusive environment. The company also incentivizes idea sharing and embraces an agile development approach, adapting swiftly based on user feedback and changing market dynamics.

These strategies collectively contribute to a dynamic and innovative culture at IVM Markets, where creativity is encouraged, diverse perspectives are valued, and client-centric solutions are at the forefront of operations.

Q. Can you provide examples of how your innovative products or services have positively impacted customers? Are there any success stories or testimonials that highlight the Efficiency and Scalability?

IVM Markets' innovations have significantly enhanced the structured products market, offering personalized and efficient investment opportunities. Our AI-driven platform streamlines investment processes, aligns with current market conditions, and consistently seeks opportunities with higher upside and simultaneously lower risk for the investor.

IVM operates as the AI-powered search and recommendation engine, creating a more extensive and higher-quality idea flow for all participants in the structured products industry. This includes the flow of ideas from advisors to our executing marketplaces, brokers, asset managers, and private banks. Subsequently, these "resellers" share these ideas with the issuer banks that manufacture the structured products, resulting in more deals for everyone.

A testimonial from a UK broker highlights what sets IVM apart: “What sets IVM apart from other pricers is that it simply works. No fiddly market inputs – just consistent results. It helps that there is a stellar team behind the scenes too.”

Q. In what ways does IVM Markets plan to expand its innovative offerings or enter new markets in the coming years? Are there any partnerships or collaborations on the horizon to enhance innovation capabilities?

IVM Markets plans to democratize finance through customized portfolios, with a primary focus on structured products. Our goal is to bridge the guidance gap using AI, enhancing client decision-making. We aim to establish a market standard with its AI-powered search and recommendation engine, contributing to the growth of the structured products market.

Key partnerships for IVM include (1) multi-issuer platforms, which represent a new innovation enabling the electronic purchase of structured products. After investors choose the most optimal structured product, they can seamlessly pass the deal from IVM to a multi-issuer platform, initiating an auction among the major banks issuing these products. (2) IVM collaborates with lifecycle providers, responsible for managing portfolios of outstanding structured products. When investors face a lifecycle event such as early redemption, maturity, or income, they need to reinvest. With a simple click, the relevant deal can be sent from the lifecycle provider to IVM, triggering a re-run of optimization in the current markets to find the most optimal reinvestment idea.

Leadership | IVM Markets

Volodymyr Gubskyi, Co-founder and CEO, brings 18 years of cross-asset derivatives and structured products experience to IVM Markets. He previously served as the regional head of structured products at Deutsche Bank, Royal Bank of Scotland, and Merrill Lynch.

Ildar Farkhshatov, Co-founder and CTO, has 15 years of experience in derivatives trading, including a role at Deutsche Bank. With an additional 16 years of tech experience, he has contributed his expertise to AllianceBernstein and Deutsche Bank.

“Our goal is to bridge the guidance gap using AI, enhancing client decision-making. We aim to establish a market standard with its AI-powered search and recommendation engine, contributing to the growth of the structured products market.”