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Members: FreeCIS
IEEE Members: Free
Non-members: FreeLength: 01:02:19
20 May 2021
Abstract:
Why are the financial markets so problematical? One reason is that financial markets consist of many systems having other complex systems as components that interact in complicated ways. The focus of this webinar is to explain the complexity of several financial systems in terms of several properties that are characteristic of large, diverse, complex systems. We distill this framework for financial systems of systems to include properties describing interactions among other system components; properties relating to interactions within the system environment; and properties relating to interactions with time. In this webinar, we discuss how these properties impact financial systems involved with high frequency trading (connectivity vs. latency arbitrage); market fragmentation (autonomy vs. regulatory-induced feedback); and credit (model diversity vs. copula model risk).
Biography:
Roy S. Freedman founded Inductive Solutions, Inc., to develop commercial AI software for genetic algorithms, neural networks, and case-based reasoning. His primary consulting interests involve solving problems associated with trading, operations, risk management, and compliance by using mathematics, statistics, and computer technology. As a consultant, he worked with stock exchanges, buy-side and sell-side firms, technology companies, startups, and government institutions. During the third term of the Bloomberg mayoral administration, he was the principal AI consultant to the Chief Information Officer of New York City Health & Human Services. As an expert witness, he testified on the federal level concerning financial and regulatory technology related to high-frequency trading.
Dr. Freedman teaches various courses related to financial systems (FinTech) and regulatory systems (RegTech) as adjunct professor in the department of Finance and Risk Engineering at the New York University Tandon School of Engineering (formerly Polytechnic University).
Why are the financial markets so problematical? One reason is that financial markets consist of many systems having other complex systems as components that interact in complicated ways. The focus of this webinar is to explain the complexity of several financial systems in terms of several properties that are characteristic of large, diverse, complex systems. We distill this framework for financial systems of systems to include properties describing interactions among other system components; properties relating to interactions within the system environment; and properties relating to interactions with time. In this webinar, we discuss how these properties impact financial systems involved with high frequency trading (connectivity vs. latency arbitrage); market fragmentation (autonomy vs. regulatory-induced feedback); and credit (model diversity vs. copula model risk).
Biography:
Roy S. Freedman founded Inductive Solutions, Inc., to develop commercial AI software for genetic algorithms, neural networks, and case-based reasoning. His primary consulting interests involve solving problems associated with trading, operations, risk management, and compliance by using mathematics, statistics, and computer technology. As a consultant, he worked with stock exchanges, buy-side and sell-side firms, technology companies, startups, and government institutions. During the third term of the Bloomberg mayoral administration, he was the principal AI consultant to the Chief Information Officer of New York City Health & Human Services. As an expert witness, he testified on the federal level concerning financial and regulatory technology related to high-frequency trading.
Dr. Freedman teaches various courses related to financial systems (FinTech) and regulatory systems (RegTech) as adjunct professor in the department of Finance and Risk Engineering at the New York University Tandon School of Engineering (formerly Polytechnic University).
