(NEW YORK)–A team collaborating out of Columbia University is studying the use of data science techniques to understand and reduce systemic counter-party risk in the ever growing world of complex derivative ‘quant’ trading.
Get TEXT alerts on hot new stock trades right to your phone
Text INVESTOR to 52236 on your phone to subscribe
The financial crisis of 2008, and even more recently the market meltdown from the collapse of complex derivatives in the CBOE Volatility Index (VIX), shows the importance for larger financial firms to use new tools such as A.I. to find out risk before it happens.
Titled “A Data Science Approach to Predict the Impact of Collateralization on Systemic Risk“, the research project simulates and analyzes the impact of financial regulations concerning the collateralization of derivative trades on systemic risk, which has been vigorously discussed since the 2008 financial crisis.
In their project they adapt a simulation technology combining advances in graph theory to randomly generate entire financial systems sampled from realistic distributions with a novel open source risk engine to compute risks in financial systems under different regulations. This allows them to consistently evaluate, predict and optimize the impact of financial regulations on all levels – from a single trade to systemic risk – before it is implemented.
The project is in collaboration with Columbia University Fintech Lab, and is headed up by Prof. Sharyn O’Halloran, Ph.D. from Columbia School of International & Public Affairs, Nikolai Nowaczyk, PhD and Donal A. Gallagher, PhD, both from Quaternion Risk Management. www.quaternion.com
Nikolai Nowaczyk, one of the lead authors on the project commented, “Combining data science technologies with an open source risk engine enabled us to bridge the gap between macro- and micro-economics, which often makes it difficult to quantitatively study the impact of financial regulations. The Fintech lab allowed us to bridge the gap between academia and the business.”
To view and download this paper please visit
Register for Updates
AI VentureTech provides investor insights and news commentary in the areas of Artificial Intelligence, and Automation. For investors interested in getting on going updates within the A.I. sector please register to their free investor mailing list at
About Fintech Lab Columbia University
The FinTech Lab will explore collaborative research applications of open source software tools that focus on systemic counterparty risk within the global financial system. This open source initiative will increase the industry’s financial literacy by broadening public access to quantitative financial models, improve model performance through intense public scrutiny, and reduce systemic risk by giving smaller, potentially less sophisticated institutions and governments the proper tools to calculate and comprehend their risk exposures. http://fintech.datascience.columbia.edu/
Quaternion Risk Management
Phone: +44 207712 1645
Follow on Twitter: https://twitter.com/quaternionrisk
Columbia School of International & Public Affairs
420 West 118th Street
New York, NY 10027
Phone: (212) 854-3242
- Vectorspace (VXV) Crypto Coin Big Uses for Quant Hedge Funds - July 1, 2019
- BioHemp (BKIT) Added to Watch List as CBD Distribution Play - June 28, 2019
- Hammer Fiber (HMMR) Moves Towards Profit in Earnings Report - June 27, 2019
- Maybe It’s Time to Automate Politicians to History Bin Using AI - April 21, 2019
- Biopharma Growth Opportunities in China, Thurs. April 4th in NYC - April 2, 2019
- IPO Schedule This Week: MITO KLDO CSTX PSTX - February 4, 2019
- IPO Investor Watch: ANCN HKIT HOTH - February 2, 2019
- CIIX Reports +43% Revenue Growth, CBD Sales Increase 8x over 2018 - January 23, 2019
- AI and Automation Sector Upgraded as Plays Against Next Recession - December 28, 2018
- Mojo Data (MJDS) Offers Cashierless Store Technology - September 25, 2018