scholarly journals Problems and prospects of algorithmic trade in financial markets

2020 ◽  
Vol 13 (2) ◽  
pp. 9-16
Author(s):  
B. V. Batiuk
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Algorithmic Trading ◽  
Optimal Conditions ◽  
Corporate Sector ◽  
The Impact ◽  
Further Development

The use of algorithms in trading (algorithmic trading) is the trend of recent decades, which has largely changed the market. As part of the research, the fundamentals of algorithmic trading, it’s possible application during exchange trading, were examined in detail. An assessment was also made of the accessibility of obtaining exchange robots for the corporate sector, the benefits of use and optimal conditions for use. Moreover, the impact of exchange trading on the global economy is valuable and a forecast is made for the further development of trading robots.

COVID -19 and Indian Financial Markets: A Review

2020 ◽  
Vol 16 (02) ◽  
pp. 1-8
Author(s):  
Kamaldeep Kaur Sarna
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Stock Markets ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Management Strategies ◽  
The Impact

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

The Impact of the COVID-19 Pandemic on Stock Markets

2020 ◽  
Vol 1 (2) ◽  
pp. 57-70
Author(s):  
Rui Dias ◽  
João Manuel Pereira
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Structural Breaks ◽  
Research Question ◽  
Causal Link ◽  
Data Series ◽  
Fluctuation Analysis ◽  
Wald Tests ◽  
The Impact ◽  
Detrended Fluctuation

COVID-19 has had a marked impact on the global economy, resulting in uncertainty, pessimism, and adverse effects on financial markets. In light of this event, this paper aims to test whether the evolution of COVID-19 (confirmed cases and deaths) is responsible for the stock market indices in eight European countries, from December 31, 2019 to July 23, 2020. Two key research questions have been raised to determine this causal link: Does the increase in COVID-19 cases and deaths cause shockwaves in Europe's financial markets? If so, does the presence of long memories cause high levels of arbitration? The results show mostly structural breaks in March 2020. In contrast, the VAR Granger Causality/Block Exogeneity Wald Tests model shows that the COVID-19 data series (confirmed cases and deaths) do not cause shocks in Europe's financial markets, which in return does not validate the first research question. The results of the exponents detrended fluctuation analysis (DFA) shows significant long memories ranging between 0.61-0.73.

Economic Slowdown and the Indian Corporate Sector

2009 ◽  
Vol 34 (3) ◽  
pp. 53-58
Author(s):  
Avinash Paranjape
Keyword(s):  
Global Economy ◽  
Foreign Currency ◽  
Contagion Effect ◽  
Corporate Sector ◽  
Related Services ◽  
Global Recession ◽  
The Face ◽  
Indian Banks ◽  
The Impact ◽  
Financial Issues

In the face of the complexities created by the turbulence, volatility, and uncertainty in the global economy, the Indian corporate sector finds itself in a state of flux. Avinash Paranjape sees the impact of the global crisis on the Indian industry as a contagion effect, being in the form of a slowdown. From the study emerge four distinct patterns of the effect of the slowdown on Indian firms. While the firms exposed to foreign currency have become victims of volatility, those in the IT-related services faced export blues. The firms in the financial and real estate sectors experienced the burst bubble syndrome, whereas the acquirers faced multiple financial issues. Despite the prevalence of pockets of weakness, in general, the author finds the Indian banks, financial institutions, and the corporate sector as strong and less exposed to the vagaries of the global recession

scholarly journals Characteristics of the Textile Industry of Two Asian Powers: China and India. Prospects for their Further Development on Global Markets

2019 ◽  
Vol 27 (5(137)) ◽  
pp. 10-19
Author(s):  
Anna Antczak ◽  
Marianna Greta ◽  
Agata Kopeć ◽  
Jacek Otto
Keyword(s):  
Developing Countries ◽  
Textile Industry ◽  
Global Economy ◽  
Global Market ◽  
Global Markets ◽  
China And India ◽  
The Impact ◽  
Further Development

The aim of this study is to characterise the textile industry of the two global giants in this field - China and India and to discuss the impact they exert on the global economy. For centuries the fibre and textile industry has played a key role for humanity. The study also draws attention to international arrangements for trade in textiles and its liberalisation. This allowed for further development of this branch of the economy and participation in the global market of developing countries.

scholarly journals THE GLOBAL ECONOMIC IMPACT OF THE COVID-19 OUTBREAK

2020 ◽  
Author(s):  
Khakim Gayurov ◽  
◽  
Munira Toshmatova ◽  
Keyword(s):  
Financial Markets ◽  
Stock Prices ◽  
Global Economy ◽  
World Health ◽  
Bond Yields ◽  
Chinese City ◽  
The World ◽  
Health Organization ◽  
The Impact ◽  
Do So

According to the World Health Organization, the new coronavirus, which first appeared in the Chinese city of Wuhan in December last year, infected more than 110,000 people in at least 110 countries and territories of the world. The virus outbreak has become one of the most serious threats to the global economy and financial markets. Large institutions and banks have reduced their forecasts for the global economy, and the Organization for Economic Co-operation and Development is one of the last countries to do so. Meanwhile, concerns about the impact of coronavirus on the global economy have stirred markets around the world: stock prices and bond yields have plummeted. The continued spread of the new coronavirus has become one of the biggest threats to the global economy and financial markets.

scholarly journals Spillovers from the Slowdown in China on Financial and Energy Markets: An Application of VAR–VECH–TARCH Models

2020 ◽  
Vol 8 (3) ◽  
pp. 52
Author(s):  
Caner Özdurak ◽  
Veysel Ulusoy
Keyword(s):  
Rare Earth ◽  
Financial Markets ◽  
Stock Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Wide Range ◽  
The Us ◽  
Chinese Stock Markets ◽  
The Impact ◽  
Industrial Metals

The 2008 global financial crisis provides us with a wide range of study fields on cross-asset contagion mechanisms in the US financial markets. After a decade of the so-called subprime crisis, the impact of market news on asset volatilities increased significantly. Consequently, return and volatility spillovers became the most extensive channel for spreading out the news generated in one market to the other ones, which made the financial markets inherit international risk factors as their own local risks. Moreover, as a result of the Chinese economy becoming the main driver of the global economy in the last decade, Chinese markets became more interconnected with developed markets which were followed by a “digital cold war” era via Twitter. In this study, we investigate the relationship between the US stock market, Chinese stock markets, rare earth markets and industrial metals, and mining products via three different models by utilizing VAR–VECH–TARCH models. According to our findings, bilateral spillover exists between US and Chinese stock markets. Cross-market spillovers show that there is a risk transmission channel between the industrial metals, rare earth, and Chinese and US stock markets due to China’s strengthening position in the global economy.

scholarly journals Sustainable Growth of International Financial Markets in the Context of International Capital Flows

2018 ◽  
Vol 23 (1) ◽  
pp. 35-49
Author(s):  
Małgorzata Janicka
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Flows ◽  
Global Economy ◽  
Sustainable Growth ◽  
International Capital Flows ◽  
International Financial Markets ◽  
International Capital ◽  
International Aspects ◽  
The Impact

In relation to financial markets sustainable growth is usually understood in a simplified and one-dimensional way as a share of financial market in the flow of investment resources from investors to projects that form part of broadly understood corporate social responsibility (CSR). Sustainable growth is usually described as an interconnection of three elements: economy, society, and environment. In such an approach the point of gravity clearly shifts towards the environmental dimension (natural resources) and the impact of economic growth upon the environment. However, if we assume that sustainable development per se goes beyond environmental and social aspects, we need to consider whether we could interpret the idea of “sustainable growth of the financial market” in relation to how economic system operates. In the paper the approach in the context of changes that take place in international financial markets and their impact upon stability of relations in international economy is proposed. The interest focuses especially on one of these elements, i.e., changes in the volume and structure of international capital flows. Hence, the goal of the paper is to analyse selected international aspects of capital flows against the background of challenges to sustainable growth of the global economy.

Inter-linkages and performance of Asian stock markets amidst COVID 2019

2020 ◽  
Vol 07 (03) ◽  
pp. 2050028
Author(s):  
Rajani B. Bhat ◽  
V. N. Suresh
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Stock Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
World Health ◽  
Corona Virus ◽  
The World ◽  
Health Organization ◽  
The Impact

The corona virus outbreak, which originated in China, has infected lakhs of people. Its spread has left businesses around the world counting costs. The corona virus is going global, and it could bring the world economy to a standstill. COVID-2019 that began in the depths of China’s Hubei province is spreading rapidly, persuading the World Health Organization to declare it as a pandemic. There are now significant outbreaks from South Korea to Italy and Iran, from America to Britain. The ongoing spread of the new corona virus has become one of the biggest threats to the global economy and financial markets. The economic impact of the COVID-2019 pandemic has introduced extraordinary volatility in global financial markets, as participants are obliged to reassess their valuations of all investments and associated derivatives as the situation develops. In an environment where uncertainty makes it unusually hard to price assets and for market-makers to operate, exchanges are providing the only way to establish consensus on these valuations in real time. Volatility has reached levels comparable with the Global Financial Crisis of 2008, with one-day losses not seen since 1987. The situation is made more challenging by high levels of indebtedness and already low interest rates. The financial markets are all integrated into one as global markets in the current era of globalization. It is important that financial markets remain able to perform their role — providing investors with liquidity, facilitating price discovery, and allowing for risk transfer and the transmission of monetary policy. This study aims at examining the performance of the selected Asian stock markets amidst the times of COVID-2019. This study intends to examine the interlinkages of Asian stock markets selected and to observe the impact of COVID-2019 on these markets. The period of study is from 1st December, 2019 to 31st March, 2020. The tools adopted for the study are correlation, regression, ANOVA and paired sample [Formula: see text] test.

scholarly journals THE IMPACT OF AUTOMATED TRADING SYSTEMS ON FINANCIAL MARKET STABILITY

2019 ◽  
pp. 255
Author(s):  
Violeta Todorović ◽  
Aleksandra Pešterac ◽  
Nenad Tomić
Keyword(s):  
Financial Markets ◽  
High Speed ◽  
Algorithmic Trading ◽  
Stock Trading ◽  
Trading Systems ◽  
Financial Market Stability ◽  
The Moment ◽  
The Impact ◽  
Choice Of Instruments ◽  
The Way

The way in which financial markets operate has substantially been changed by the development of information technology. Automation of trading systems in financial markets represents the last phase of depersonalizing activities previously done by traders. Algorithmic trading development enabled computers to determine the moment and the way of executing sales orders. Computers still do not make autonomous decisions regarding the choice of instruments to be traded or trading criteria. They implement the strategy a trader has decided on, choosing a favorable moment. This reduces the impact of human emotions on decision making and enables overcoming possible problems which arise due to neglecting or lack of concentration. High-frequency trading enables the execution of algorithmic operations at a high speed. The main goal of the paper is to determine advantages and dangers produced by algorithmic stock trading.

scholarly journals DEVELOPMENT OF THE BANKING SECTOR OF UKRAINE IN THE SPACE OF FORMATION OF DESTRUCTIVE CONSEQUENCES OF THE INFLUENCE OF THE GLOBAL FINANCIAL AND ECONOMIC CRISES: ECONOMIC AND LEGAL ASPECTS

THE BULLETIN ◽  
2021 ◽  
Vol 389 (1) ◽  
pp. 137-145
Author(s):  
V. Y. Vovk ◽  
Yu.V. Zhezherun ◽  
V.G. Kostohryz ◽  
V. О. Maliarova
Keyword(s):  
Economic Development ◽  
Financial Markets ◽  
Economic Crisis ◽  
Global Economy ◽  
Banking Sector ◽  
Banking System ◽  
Negative Consequences ◽  
Economic Crises ◽  
The World ◽  
The Impact

The article examines the impact of globalization on the development of the world and national economic systems. The high probability of a global economic recession due to the coronavirus outbreak is projected to have significant consequences for both the global economy and the economy of Ukraine. Due to the probable change in the structure of the world economy and logistics, there is a growing need to study the risks of the national banking system, which demonstrates a high dependence on global financial markets. The peculiarities of the manifestation of financial and economic crises in the conditions of turbulence of the international financial markets and strengthening of financial instability have been considered. The causes and consequences of crises in the banking sector of Ukraine have been studied. The analysis of macroeconomic indicators of economic development of Ukraine during 2006-2019 with identifying of crisis periods has been carried out. Particular attention has been paid to the study of the preconditions for the emergence and consequences of the global financial and economic crisis for the economy of Ukraine in general and the banking sector in particular. Indicators that characterize the degree of penetration of the banking system into the economy of Ukraine have been analyzed, that will determine the features of crises at different stages of socio-economic development and conduct a comparative assessment of anti-crisis measures of the NBU aimed at stabilizing the banking sector. Taking into account the fact that the causes of financial and economic crises are not identical, measures used during the Global Financial and Economic Crisis of 2007-2011 cannot be taken to overcome the negative consequences of the Coronacrisis of 2020. Regulatory aspects of the banking system in times of crisis have been systematized. An attempt to predict the possible development of events in the domestic banking sector in the context of the Coronacrisis of 2020 has been made. The purpose of the article is to study the development trends of the banking sector of Ukraine in the space of formation of the destructive consequences of the global financial and economic crises and to determine the main directions of anti-crisis regulation of banking.

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