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Trading Counterparty Recommendation System

A contextual recommendation system helping traders select counterparties and analyze transaction costs.

Application sectors

  • Finance
  • Trading
  • Quant Analytics

Technologies

  • Python
  • Machine Learning
  • Bayesian ML
  • SQL
  • Bloomberg
Financial market charts and trading screens

Business issue

Why I was brought into the project

Trading teams needed decision-support models to select counterparties, estimate pricing references and better understand execution costs.

Context

The environment around the project

Traders needed model-based support for counterparty choice and execution analysis.

Functional environment

The functional context covered counterparty selection, financial product pricing and transaction cost analysis for traders.

Technical environment

The technical environment combined Python, machine learning, Bayesian approaches, SQL, derivatives, fixed income and Bloomberg data.

Challenges

The recommendation had to account for execution context, market conditions, counterparty status and historical performance.

Solution

My contribution and its impact

My contribution to the project

I implemented a contextual Bayesian recommendation model, developed a regression pricing model and used both to support transaction cost analysis.

  • Counterparty recommendation model
  • Financial product pricing model
  • Transaction cost analysis framework
  • Trader-oriented analytical outputs

Impact

The work helped traders analyze execution choices more systematically and identify factors influencing transaction costs.

  • More structured counterparty selection
  • Reference pricing support for traders
  • Clearer understanding of execution cost drivers

Impact metrics

  • Counterparty ranking
  • Pricing model
  • TCA insights

Approach

How I structured the work

  1. Model the execution context and relevant counterparty features.
  2. Build a Bayesian recommendation model and pricing regression model.
  3. Analyze transaction costs to identify levers for future negotiation.

Takeaways

What I learned from this project

  1. Financial decision support models must reflect market context and user workflow.
  2. Recommendation, pricing and TCA become more powerful when designed together.
  3. Quant models need clear interpretation to be useful for trading teams.