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163 views23 pages

1 Introduction

Uploaded by

Simon Hung
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© © All Rights Reserved
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FIN4124/FIN4719 FinTech and

Financial Data Analytics

Introduction
Dr. Zhang Weiqi
Course Information

• Instructor: Dr. Zhang Wei Qi


Office: BIZ1 MRB #7-63
Email: [email protected]
Telephone: 6516 7947

• About me

• Consultation: E-mail at least the day before

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Course Information

• Reference Book
– Yves Hilpisch (2019), “Python for Finance”
2nd edition, O’Reilly

• Prerequisites:
– Investment (FIN3102 or FIN3702 or QF3101)
– Analytics Basics (DSC2008 or DAO2702 or
CS1010 or CS1101)

© Dr. ZHANG Weiqi for FIN4124/FIN4719


What is this course about ?
• Introduction to Financial Data Analytics
– Bloomberg
– Python
• Investment Analytics
– Trading strategies
– International portfolio strategies
• Risk Analytics
– Consumer credit scoring
– Corporate credit risk prediction

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Assessment
• This is a 100% CA course

Class Participation 15%


Term Test 30%
Term Project 25%
Assignments 30%

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Assessment
• Class participation (15%):
➢ Both attendance and participation
➢ Questions and discussions during each classes, term project
presentations will be counted towards class participation.
➢ Grading are based on the quality of participation.
➢ Class participation will be randomized for term project
presentations in Week 12 and Week 13.
• Term Test (30%):
➢ Date: Week 11 (Time and Venue TBA)
➢ The term test will be an open-book test.
➢ Covers everything including assignments.
➢ Make sure that you are available to sit for the test.

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Assessment
• Term Project (25%):
➢ The objective of the project is to allow students to
creatively think about how to identify and address
finance questions or problems by applying financial data
analytics skills acquired from the course.
➢ Students will need to form groups through LumiNUS
➢ Groups will be graded based on individual presentation
(in Week 12 and Week 13) and a group written report.
➢ More information next week.

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Assessment

• Assignments (30%)
➢ Two assignments in total, 15% each.
➢ Each assignment comprises of a number of questions and/or
exercises related to topics that are covered in class.
➢ Assignment questions will be uploaded on LumiNUS.
➢ Components for each assignment (2 * 15% = 30%)
Group Assignment Answer (Group): 10%
Implementation and Demo (CAMRI lab): 5%
➢ Group Assignment Answer is due on Monday 9am

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Assessment

• Assignments (30%)

Week Week Starting Topics and Activities

5 Sep 9 Assignment 1 Due and Implementation


9 Oct 14 Assignment 2 Due and Implementation

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Point to Note

• Prepare Name Tag on your table


• Attendance: Students must not miss more than 2
classes (not including absence due to medical -
accompanied by medical certificates or compassionate
reasons – inform lecturer before class). Violators will be
heavily penalized.
• Refer to LumiNUS for important announcements and
information, feedback and forum

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Any Questions?

© Dr. ZHANG Weiqi for FIN4124/FIN4719


In This Class

• What is FinTech?
• What is Financial Data Analytics?
• Introduction to Bloomberg
• Introduction to Python, the Basics

© Dr. ZHANG Weiqi for FIN4124/FIN4719


What is FinTech?

• Financial Technology
– Transactional
• Payment,
• Cryptocurrencies
– Financial Analytics
• Big data
• Machine learning

© Dr. ZHANG Weiqi for FIN4124/FIN4719


UBS trading floor

Tweeted by Liz Ann Sonders, Chief Investment Strategist, Charles Schwab &Co. Sept.
2016
UBS trading floor in Stamford, Connecticut

© Dr. ZHANG Weiqi for FIN4124/FIN4719


What is Data?

But do you have the


resource to refine it?
➔ Analytics

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Big Data in Finance

• Thirty years’ worth of daily stock data for a


SINGLE stock ~ 7,500 closing quotes
• On a typical trading day, 1 single trading hour
the stock price of Apple Inc. (AAPL) may be
quoted around 15,000 times
• How many stocks are there?
– NYSE, NASDAQ, AMEX, international
• What is the time frame and frequency do you
prefer?

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Why Financial Analytics?
• “Bank of America and J.P. Morgan,
who largely build most of their
trading systems in Python and are
actively hiring on the street, are
always on the lookout for Python
developers, but other banks and
financial firms, in particular fintechs,
are starting to look for more and
more programmers who can code in
Python,” said Nick Vermeire, a senior
technical recruiter at Pencom
Systems.

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Why Financial Analytics?
Risk Analyst - Equities
Point72– Singapore Portfolio Analyst
Apply Now
• Programming skills in Python or R Franklin Templeton Investments– Singapore
• Associate, Risk Analysis & Reporting • Experience with Bloomberg, Barclays Point,
• Around 1-3 years of experience in a BarraOne or similar risk system a plus.
financial institution; • Good programming skills a plus. Proficient in
• Technical skills (SQL, Python, Excel SQL, VBA. Knowledge in Python, Perl, ASP,
VBA) and handling of large analytical Shell script are plus.
datasets are preferred; …

Junior Trader
Ingensoma Arbitrage Pte Ltd
in Singapore, Singapore, Singapore
• Work/Internship experience in financial trading space will be advantageous.
• Some Exposure to at least one of these languages: R, C/C++, C#, Java, VBA,
Python
• Innovative mind with a desire to create and improve cutting edge trading
strategies and program.
• Working knowledge of game theory, forecasting and data mining techniques.
• Comfort working within a collaborative, team-oriented environment
• Have excellent mental arithmetic abilities. - Competitive personality, interest in
games of chance, inquisitive, proactive.
• Adequate English level.

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Why in Singapore?

• The demand to integrate finance domain


knowledge and analytical skills
– MAS released the industry transformation map for
financial services in October 2017
• Additional 3000 net jobs in financial services and 1000 net
jobs in the FinTech sector annually
– By October 2017, more than 400 Fintech enterprises
have set up a base in Singapore

© Dr. ZHANG Weiqi for FIN4124/FIN4719


What is Programming?

• The fear of coding


– Too difficult
– Not meant to code
…
• Programming language is the language that
human speaks to machines
– Everyone can speak (at least) a language
– The more you speak, the more fluent you are
– You can code

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Why Python?
• Readability
• Open Source
• Python packages for data analytics

• Important
• Python is Case Sensitive!
• Hands on practice

© Dr. ZHANG Weiqi for FIN4124/FIN4719


Downloading Python
You may download Python 3.7 version on your laptop
https://www.anaconda.com/distribution/

© Dr. ZHANG Weiqi for FIN4124/FIN4719


© Dr. ZHANG Weiqi for FIN4124/FIN4719

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