In the new digital economy, technology stands out as one of the main factors driving change within the financial system. Algorithmic technology, in particular, took the world of finance by storm and raises opportunities and risks that are still being identified and assessed by system participants and regulators. The aim of this course is to introduce students to algorithmic technology as one of the most significant drivers of change within the financial system. The course starts with a non-technical introduction to algorithms and a brief primer on the financial system.That should arm students with the ability to discuss three case studies which illustrate the opportunities and risks brought by the use of algorithmic technology in finance: ‘robo-advice,’ algorithmic trading and algorithmic credit scoring. Through the analysis of these three case studies, students are expected to gain a better understanding of the unique difficulties of regulating (algorithmic) ‘FinTech’—as well as to consider how the power of technology can also be harnessed to address those same difficulties. The course wraps up with a discussion of additional ‘FinTech’ use cases, giving students the opportunity to apply their newly acquired knowledge to new scenarios.
Algorithms and Financial Markets
2 ECTs / 12 / English