We're building a predictive LLM that forecasts market volatility. As market makers, we use it to avoid adverse selection from informed traders, allowing us to quote reliably and improve liquidity for all participants.
Spectral AI is building a predictive large language model designed specifically for financial markets. Our founding team combines expertise in physics, mathematics, and AI to create technology that forecasts market volatility before it happens.
As market makers, we face a critical challenge: during volatile periods, informed traders can predict price moves before we can. This adverse selection forces us to widen spreads or pull liquidity entirely, harming all market participants. Our predictive LLM solves this.
By forecasting volatility and identifying periods of elevated information asymmetry, we can quote more confidently and maintain tighter spreads. This means better liquidity when markets need it most, benefiting everyone who trades.
Our LLM ingests global news, geopolitical signals, and macro data in real time, then translates predictions into concrete trading actions before volatility reaches the order book.
Market makers get crushed when volatility spikes and resting orders get run over. When our LLM detects escalating geopolitical tension or macro catalysts, it signals the trading algorithm to widen spreads and reduce quote sizes before volatility hits the book.
Market makers lose money to informed flow, traders acting on breaking news before prices adjust. Our LLM ingests global news feeds at scale and acts as a high speed circuit breaker, temporarily pulling liquidity when a sudden, high impact event is detected until prices stabilize.
Market makers inevitably accumulate inventory. When our LLM predicts a strong macro catalyst, the system can safely skew inventory capturing both the spread and directional profit.
Predictive intelligence for market making is just the beginning. Our core competency (forecasting political and macro events) unlocks strategies that go far beyond liquidity provision.
Trading the immediate aftermath of political announcements; Fed rate decisions, regulatory rulings, international trade sanctions, before the broader market has fully priced in the long-term impact.
Taking outright long or short positions based on predictive sentiment, holding over days or weeks as geopolitical events unfold. Where reactive traders follow the news, our models anticipate it.
We're selectively engaging with partners who share our long-term vision.
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