Introduction to Financial Technology

Front Cover
Elsevier, Apr 24, 2006 - Computers - 368 pages

The financial technology environment is a dynamic, high-pressured, fast-paced world in which developing fast and efficient buy-and-sell order processing systems and order executing (clearing and settling) systems is of primary importance. The orders involved come from an ever-changing network of people (traders, brokers, market makers) and technology. To prepare people to succeed in this environment, seasoned financial technology veteran Roy Freedman presents both the technology and the finance side in this comprehensive overview of this dynamic area. He covers the broad range of topics involved in this industry--including auction theory, databases, networked computer clusters, back-office operations, derivative securities, regulation, compliance, bootstrap statistics, optimization, and risk management—in order to present an in-depth treatment of the current state-of-the-art in financial technology.

Each chapter concludes with a list of exercises; a list of references; a list of websites for further information; and case studies.

  • With amazing clarity, Freedman explains both the technology side and the finance side of financial technology
  • Accessible to both finance professionals needing to upgrade their technology knowledge and technology specialists needing to upgrade their finance knowledge

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Page 15 - LISTEN, my children, and you shall hear Of the midnight ride of Paul Revere, On the eighteenth of April, in Seventyfive ; Hardly a man is now alive Who remembers that famous day and year. He said to his friend, "If the British march By land or sea from the town to-night, Hang a lantern aloft in the belfry arch Of the North Church tower as a signal light, — One, if by land, and two, if by sea ; And I on the opposite shore will be, Ready to ride and spread the alarm Through every Middlesex village...
Page 30 - Remember that money is of a prolific generating nature. Money can beget money, and its offspring can beget more, and so on. Five shillings turned is six ; turned again it is seven and threepence ; and so on till it becomes a hundred pounds. The more there is of it, the more it produces every turning, so that the profits rise quicker and quicker. He that kills a breeding sow, destroys all her offspring to the thousandth generation. He that murders a crown, destroys all that it might have produced,...
Page 30 - Remember, that time is money. He that can earn ten shillings a day by his labour, and goes abroad, or sits idle, one half of that day, though he spends but sixpence during his diversion or idleness, ought not to reckon that the only expense; he has really spent, or rather thrown away, five shillings besides.
Page 30 - ... his diversion, or idleness, ought not to reckon that the only expense ; he has really spent, or rather thrown away, five shillings besides. Remember that credit is money. If a man lets his money lie in my hands after it is due, he gives me the interest, or so much as I can make of it, during that time. This amounts to a considerable sum where a man has good and large credit, and makes good use of it.
Page 30 - They give the title of merchant to every trader; who Rate their Goods according to the time and spetia they pay in: viz. Pay, mony, Pay as mony, and trusting. Pay is Grain, Pork, Beef, &c. at the prices sett by the General Court that Year; mony is pieces of Eight, Ryalls, or Boston or Bay shillings (as they call them,) or Good hard money, as sometimes silver coin is termed by them; also Wampom, viz'- Indian beads wch serves for change.
Page 17 - The first letter is kappa. This being in the second division is on tablet number two, and, therefore, he must raise two torches on the left, so that the receiver may know that he has to consult the second tablet. He will now raise five torches on the right, to indicate that it is kappa, this being the fifth letter in the second division, and the receiver of the signal will note this down on his writing tablet. The dispatcher will then raise four torches on the left as rho belongs to the fourth division,...
Page 302 - Insider trading" refers generally to the act of purchasing or selling securities, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material nonpublic information about an issuer or the trading market for an issuer's securities.
Page 62 - FIPS specifications are drafted by the National Institute of Standards and Technology (NIST), formerly known as the National Bureau of Standards (NBS).

About the author (2006)

Roy S. Freedman founded Inductive Solutions, Inc., in 1989. His primary consulting and research interests involve the practical application of mathematics, statistics, and computer technology to risk management problems in trading, operations, and compliance. He is also Adjunct Associate Professor of Financial Engineering at Polytechnic University where he teaches courses on financial technology, operational risk, technology management, and quantitative methods.

Dr. Freedman has written over 60 published papers, two books, and six book chapters. He is the author of "Artificial Intelligence On Wall Street" that appears in the Encyclopedia of Computer Science and Technology (Volume 28) and is the primary editor of Artificial Intelligence in the Capital Markets: State-Of-The-Art Applications for Institutional Investors, Bankers & Traders. Dr. Freedman has been involved in assignments for the New York Stock Exchange, Merrill Lynch, Robertson Stephens, Banco Santander, Meridian Investment Company, Sun Microsystems, Tamiso & Company, Time-Warner, Chemical Bank, The Equitable, Loral, Grumman, and many other institutions.

Prior to his work at Inductive Solutions, Inc., Dr. Freedman was Associate Professor of Computer Science at Polytechnic University.

Dr. Freedman's professional activities include serving as editor and reviewer for several publications and being an invited speaker and teacher at many conferences and seminars. He was the Program Chairman for the first, second, and third International Conference on Artificial Intelligence Applications on Wall Street.

Dr. Freedman received a BS and MS in Mathematics, an MS in Electrical Engineering, and a Ph.D. in Mathematics, all from Polytechnic University in New York City. He is a member of the AAAI, ACM, GARP, IEEE, SIAM, and SQA.