Book DescriptionRisk management solutions for today's high-speed investing environment
Real-Time Risk is the first book to show regular, institutional, and quantitative investors how to navigate intraday threats and stay on-course. The FinTech revolution has brought massive changes to the way investing is done. Trading happens in microsecond time frames, and while risks are emerging faster and in greater volume than ever before, traditional risk management approaches are too slow to be relevant. This book describes market microstructure and modern risks, and presents a new way of thinking about risk management in today's high-speed world. Accessible, straightforward explanations shed light on little-understood topics, and expert guidance helps investors protect themselves from new threats. The discussion dissects FinTech innovation to highlight the ongoing disruption, and to establish a toolkit of approaches for analyzing flash crashes, aggressive high frequency trading, and other specific aspects of the market.
Today's investors face an environment in which computers and infrastructure merge, regulations allow dozens of exchanges to coexist, and globalized business facilitates round-the-clock deals. This book shows you how to navigate today's investing environment safely and profitably, with the latest in risk-management thinking.
- Discover risk management that works within micro-second trading
- Understand the nature and impact of real-time risk, and how to protect yourself
- Learn why flash crashes happen, and how to mitigate damage in advance
- Examine the FinTech disruption to established business models and practices
When technology collided with investing, the boom created stratospheric amounts of data that allows us to plumb untapped depths and discover solutions that were unimaginable 20 years ago. Real-Time Risk describes these solutions, and provides practical guidance for today's savvy investor.
Table of Contents
- Title Page
- Chapter 1: Silicon Valley Is Coming!
- Chapter 2: This Ain't Your Grandma's Data
- Chapter 3: Dark Pools, Exchanges, and Market Structure
- Chapter 4: Who Is Front‐Running You?
- Chapter 5: High‐Frequency Trading in Your Backyard
- Chapter 6: Flash Crashes
- Chapter 7: The Analysis of News
- Chapter 8: Social Media and the Internet of Things
Chapter 9: Market Volatility in the Age of Fintech
- Too Much Data, Too Little Time—Welcome, Predictive Analytics
- Want to Lessen Volatility of Financial Markets? Express Your Thoughts Online!
- Market Microstructure Is the New Factor in Portfolio Optimization
- Yes, You Can Predict T + 1 Volatility
- Market Microstructure as a Factor? You Bet
- Case Study: Improving Execution in Currencies
- For Longer‐Term Investors, Incorporate Microstructure into the Rebalancing Decision
- End of Chapter Questions
Chapter 10: Why Venture Capitalists Are Betting on Fintech to Manage Risks
- Opportunities for Disruption Are Present, and They May Not Be What They Seem
- Data and Analytics in Fintech
- Fintech as an Asset Class
- Where Do You Find Fintech?
- Fintech Success Factors
- The Investment Case for Fintech
- How Do Fintech Firms Make Money?
- Fintech and Regulation
- End of Chapter Questions
- Authors' Biographies
- End User License Agreement
- Title: Real-Time Risk
- Release date: February 2017
- Publisher(s): Wiley
- ISBN: 9781119318965