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Financial Network Analytics @ NetONets

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Presentation at Circuits of Profit and NetONets in Budapest on 6 and 7 June 2011.

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Financial Network Analytics @ NetONets

  1. 1. Circuits of Profit6th June 2011<br />Visualizing Financial Networksnew understanding of the financial system and implications for policy makers<br />Inês Salpico<br />Kimmo SoramäkiSoramäki Networks<br />
  2. 2. Context: Aftermath of the financial crisis<br />Understanding of the network nature of the financial system<br />Systemic risk:<br />“too connected to fail”<br />
  3. 3. Context: Aftermath of the financial crisis<br />Understanding of the network nature of the financial system<br />Stress and increase of regulation<br />
  4. 4. Context: Aftermath of the financial crisis<br />Understanding of the network nature of the financial system<br />Stress and increase of regulation<br />Extended mandate(s) to collect data<br />
  5. 5. Supervision<br />Regulation<br />Data<br />
  6. 6. Supervision<br />Regulation<br />Data<br />Real world<br />
  7. 7. Context: Aftermath of the financial crisis<br />Understanding of the network nature of the financial system<br />Stress and increase of regulation<br />Extended mandate(s) to collect data<br />Need to process and analyze this data<br />
  8. 8. Theory<br />Research<br />Supervision<br />Regulation<br />Methods<br />Data<br />
  9. 9. Questions: <br />How to make sense of data?<br />
  10. 10. Questions: <br />How to make sense of data?<br />How to make data analysis actually operative in supervision and regulation?<br />
  11. 11. Theory<br />Research<br />Supervision<br />Regulation<br />New adequate analytical paradigms<br />namely: network<br />Methods<br />Data<br />
  12. 12. Questions: <br />How to make sense of data?<br />How to make data analysis actually operative in policy and supervision?<br />How to use analysis to actually see what’s happening in the system? <br />
  13. 13. x<br />(You wish!)<br />
  14. 14. Intelligence?<br />Financial crisis are different and rare <br />
  15. 15. Intelligence?<br />Financial crisis are different and rare <br />Pattern recognition is hard for computers<br />
  16. 16. Intelligence?<br />Financial crisis are different and rare <br />Pattern recognition is hard for computers<br />The patterns to be recognized would have to be frequent enough for computers to learn<br />
  17. 17.
  18. 18. Intelligence?<br />AI - Artificial Intelligence<br />
  19. 19. Intelligence?<br />AI - Artificial Intelligence<br />IA - Intelligence Amplification<br />ref: William Ross Ashby (1956) in ‘Introduction to Cybernetics’<br />Tools that make data and analysis actionable for humans<br />
  20. 20.
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  25. 25.
  26. 26. FNA<br />Platform for <br />Exploring <br />Analyzing<br />Visualizing <br />financial networks <br />
  27. 27. Paradigm<br />understanding<br />
  28. 28. Versions<br /><ul><li>Web
  29. 29. Cloud service
  30. 30. REST API (for accessing FNA engine from web applications)
  31. 31. Intranet
  32. 32. Operative use
  33. 33. Integration to databases and user management
  34. 34. Browser based GUI
  35. 35. Desktop
  36. 36. By demand, academic use
  37. 37. Command line version available
  38. 38. Integration with external programs like Matlab, Stata, Excel, etc.</li></li></ul><li>Thank you<br />More information<br />www.financialnetworkanalysis.com<br />Contact us<br />kimmo.soramaki@fna.fi<br />ines.salpico@fna.fi<br />
  39. 39. Objectives<br />Provide a tool for time series analysis of network data in finance<br />Provide a platform for building agent based and simulation models<br />Make advances in research available to policy<br />Ease of use, performance and security<br />

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