Enhancing Anomaly Detection in Financial Markets with an LLM-based Multi-Agent Framework

TL;DR

This paper presents a novel LLM-based multi-agent framework that automates and improves anomaly detection in financial markets, reducing human effort and increasing accuracy.

Contribution

It introduces a collaborative multi-agent system leveraging LLMs for automated anomaly validation and interpretation in financial data, a new approach in market monitoring.

Findings

Enhanced detection accuracy demonstrated on S&P 500 data

Reduced human intervention in anomaly verification

Improved efficiency in financial market monitoring

Abstract

This paper introduces a Large Language Model (LLM)-based multi-agent framework designed to enhance anomaly detection within financial market data, tackling the longstanding challenge of manually verifying system-generated anomaly alerts. The framework harnesses a collaborative network of AI agents, each specialised in distinct functions including data conversion, expert analysis via web research, institutional knowledge utilization or cross-checking and report consolidation and management roles. By coordinating these agents towards a common objective, the framework provides a comprehensive and automated approach for validating and interpreting financial data anomalies. I analyse the S&P 500 index to demonstrate the framework's proficiency in enhancing the efficiency, accuracy and reduction of human intervention in financial market monitoring. The integration of AI's autonomous functionalities with established analytical methods not only underscores the framework's effectiveness in anomaly detection but also signals its broader applicability in supporting financial market monitoring.