IEORE4725 Big Data in Finance

Additional Information: IEOR_E4725_Spring_2016_Syllabus.pdf

The vast proliferation of data and increasing technological complexities continue to transform the way industries operate and compete. Over the last two years, 90 percent of the data in the world has been created as a result of the creation of 2.5 quintillion bytes of data on a daily basis. Commonly referred to as big data, this rapid growth and storage creates opportunities for collection, processing and analysis of structured and unstructured data.

Financial services, in particular, have widely adopted big data analytics to inform better investment decisions with consistent returns. In conjunction with big data, algorithmic trading uses vast historical data with complex mathematical models to maximize portfolio returns. The continued adoption of big data will inevitably transform the landscape of financial services. However, along with its apparent benefits, significant challenges remain in regards to big data’s ability to capture the mounting volume of data.

The increasing volume of market data poses a big challenge for financial institutions. Along with vast historical data, banking and capital markets need to actively manage ticker data. Likewise, investment banks and asset management firms use voluminous data to make sound investment decisions. Insurance and retirement firms can access past policy and claims information for active risk management.

The course will be a mix of Theory and practice with real big data cases in finance. We will invite guest lecturers mostly for real Big Data Finance Applications.

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