The Agentic Bank

Basket Replication & Hedging Agent

⬡ Mirror Replicates index/basket exposure and proposes the hedging trades.
◆ Supervised Worker

Decomposes an ETF or swap into its constituents, prices the replication basket, and computes the hedge to keep tracking error down. It runs the basket arithmetic continuously: inside a tight rebalancing band it executes; the rest it stages for the oversight/risk agent gate.

Memory

Working Target exposure, current basket, tracking error.
Semantic Index methodologies, corporate-action treatment, financing curves.
Store Position store + index-constituent feed

Orchestration

pipeline MCP

Harness · Managed Agents … sandboxed basket optimisation; pre-trade gate inline.

Tools

{ } Index constituent + corporate-action feed API ›_ Basket optimiser Code exec { } Execution gateway API { } Pre-trade limit gate API

Evals & guardrails

  • Tracking error monitored continuously; band breach routes a proposal to the oversight/risk agent.
  • Corporate-action handling validated against a labelled event set.
  • Auto-execution capped by rebalance band; all else staged for the risk-agent gate.

Frontier edge

  • World-model simulation: forecasts the tracking-error and market-impact path of a rebalance basket before committing the trades.
  • Anticipatory rebalancing: reads index reconstitution and corporate-action calendars to pre-stage baskets ahead of the effective date.
  • Formal action-gating: in-band executions are signed and replayable, provably within the authorised rebalance envelope.

In numbers

430
Baskets managed
6 bps
Median tracking error

Handoffs

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