scholarly journals Some Thoughts on Innovation and Regulation of Financial Technology

2021 ◽  
Vol 13 ◽  
pp. 127-132
Author(s):  
Zhuoying Li
Keyword(s):  
Artificial Intelligence ◽  
Financial Markets ◽  
Information Technologies ◽  
Financial Regulation ◽  
Technology Development ◽  
Regulatory Agencies ◽  
Financial Risks ◽  
Innovative Development ◽  
Financial Industry ◽  
Financial Technology

The recent years witness innovative development of financial industry, which attributes to fast progress and in-depth application of information technologies such as big data, artificial intelligence, and blockchain. But, at the same time, they bring challenges to financial regulation and accelerate rise of regulatory technology. Based on challenges to regulatory agencies brought by financial technology development, this study proposes suggestions for the coordinated relationship between financial innovation and financial technology regulation from the perspective of technology empowerment, in order to improve efficiency of financial markets, and reach a balance between financial technology and prevention of systemic financial risks.

scholarly journals The Influence and Application of Artificial Intelligence &Blockchain on Financial Service

2018 ◽  
Vol 9 (3) ◽  
pp. 45-54
Author(s):  
Shu-Han Chang ◽  
Chien-Ping Shih
Keyword(s):  
Artificial Intelligence ◽  
Technology Development ◽  
Rapid Development ◽  
Science And Technology ◽  
Financial Service ◽  
Financial Industry ◽  
Service Model ◽  
Mobile Payments ◽  
Technology Industry ◽  
Financial Technology

Abstract The advances in science and technology have benefited many industries. In recent years, we have witnessed the rapid development of financial technology. All of them worked hard in this area, such as Amazon, UPS, and Wal-Mart International. In China, leading e-commerce platforms such as Alibaba and Tencent actively provided services to SMEs in their ecosystems; Taiwan also make efforts to develop it. The emergence of networking account scientific and technological AMIS provides various payment companies, lending platform, financial robots. Although Taiwan’s innovation industry faces many restrictions on its development, it will still go through it. Therefore, Taiwan has continued to update laws and regulations related to financial technology. The latest rule “Financial Science and Technology Development and Innovation Experiments Regulations” regards the development of Taiwan’s financial technology. FinTech has gradually replaced the traditional financial service model. Through mobile payments, cloud platforms, and artificial intelligence, the technology industry has gradually penetrated into the financial industry. We are willing to make more progress in Taiwan’s financial technology to deepen the understanding of FinTech as a study.

The Evolving Marketscape of Climate Finance

Climate Law ◽  
2014 ◽  
Vol 4 (1-2) ◽  
pp. 94-106 ◽  
Author(s):  
Benjamin J. Richardson
Keyword(s):  
Climate Change ◽  
Financial Markets ◽  
Green Energy ◽  
Financial Risks ◽  
Climate Finance ◽  
Financial Industry ◽  
Socially Responsible ◽  
Environmental Behaviour ◽  
Responsible Investing

An important dimension of international and national climate governance is the financial sector. Climate finance refers to the role of financial institutions in addressing climate change, such as through investment transactions, identifying financial risks and supporting clean and green energy developments. Global financial markets have become a significant driver of environmental pressure, but also potentially a means of leveraging positive change. The latter role is expressed through the growing movement for socially responsible investing (sri). This article examines how the financial industry affects action on climate change, the role of the sri movement in improving environmental behaviour, and the place of state-based regulation in creating a more conducive “marketscapeˮ for climate finance.

Cross-border regulation and fintech: are transnational cooperation agreements the right way to go?

2019 ◽  
Vol 24 (2) ◽  
pp. 367-395
Author(s):  
Petja Ivanova
Keyword(s):  
At Risk ◽  
Financial Markets ◽  
Financial Stability ◽  
Financial Regulation ◽  
Financial Sector ◽  
Cross Border ◽  
Transnational Cooperation ◽  
Regulatory Instruments ◽  
The Right ◽  
Financial Technology

Abstract In light of inevitable cross-border scenarios in today’s highly interconnected financial markets and since financial stability may be put at risk by the rising phenomenon of financial technology (known as fintech), the importance of developing effective ways to regulate fintech across borders cannot be neglected. The financial sector has changed from a traditional one marked by conventional financial intermediation structures towards an increasingly technology-affected one. Not only this change but anticipated developments too require if not extensively reconsidering the design of financial regulation,1 then at least not turning a blind eye to shaping developments. Whether the numerous recently sprouting bilateral fintech cooperation agreements are adequate transnational regulatory instruments to address fintech effectively across borders is for this paper to elucidate.

Managing expectations in financial markets: voluntary accountability practices of capital market regulators in Spain and Turkey

2021 ◽  
Author(s):  
Fulya Apaydin ◽  
Jacint Jordana
Keyword(s):  
Comparative Study ◽  
Financial Markets ◽  
Public Administration ◽  
Capital Market ◽  
Financial Regulation ◽  
Organizational Capacity ◽  
Regulatory Agencies ◽  
The World ◽  
Independent Regulatory Agencies ◽  
Accountability Practices

Abstract In recent decades, independent regulatory agencies (IRAs) have been introduced as part of public administration reforms around the world. Unlike traditional administrative agencies, most IRAs are not accountable to the executive and their accountability relationship to the legislative tends to be weak. Nevertheless, these agencies often engage in acts of voluntary explanation and justification of their decisions to stakeholders. Based on a comparative study of financial regulation agencies, this article shows that these IRAs resort more actively to voluntary accountability when the expectations of actors interacting with the agency are at conflict. Specifically, we argue that the agency’s ability to manage expectations is shaped by the level of agency independence and the degree of organizational capacity. Our findings contribute to the existing debates by conceptualizing voluntary accountability as a mechanism for managing stakeholders’ conflicting expectations through the lens of financial regulation based on original evidence from Spain and Turkey.

scholarly journals Moore's Law versus Murphy's Law: Algorithmic Trading and Its Discontents

2013 ◽  
Vol 27 (2) ◽  
pp. 51-72 ◽  
Author(s):  
Andrei A Kirilenko ◽  
Andrew W Lo
Keyword(s):  
Financial Markets ◽  
Financial Stability ◽  
Financial Regulation ◽  
Economic Incentives ◽  
Unintended Consequences ◽  
Algorithmic Trading ◽  
Market Participants ◽  
Financial Regulatory ◽  
Financial Technology ◽  
Key Innovations

Financial markets have undergone a remarkable transformation over the past two decades due to advances in technology. These advances include faster and cheaper computers, greater connectivity among market participants, and perhaps most important of all, more sophisticated trading algorithms. The benefits of such financial technology are evident: lower transactions costs, faster executions, and greater volume of trades. However, like any technology, trading technology has unintended consequences. In this paper, we review key innovations in trading technology starting with portfolio optimization in the 1950s and ending with high-frequency trading in the late 2000s, as well as opportunities, challenges, and economic incentives that accompanied these developments. We also discuss potential threats to financial stability created or facilitated by algorithmic trading and propose “Financial Regulation 2.0,” a set of design principles for bringing the current financial regulatory framework into the Digital Age.

scholarly journals Financial Markets: From the “Tragedy of Commons” to Balanced Regulation

2020 ◽  
Vol 15 (2) ◽  
pp. 173-190
Author(s):  
Anastasia Podrugina ◽  
◽  
Anton Tabakh ◽  
Keyword(s):  
Financial Markets ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Regulation ◽  
Financial System ◽  
Political Influence ◽  
Regulation System ◽  
Shadow Banking ◽  
Financial Industry ◽  
Tax Legislation

Nowadays the global financial system faces a triple challenge: the threat of a new systemic financial crisis at both global and regional levels; difficulties of constant adaptation of existing financial business and regulatory practices to intensive technological innovations; direct and hidden consequences of excessive political influence on the financial system through sanctions and selectively applied practices for sanction purposes. Improving the quality of financial regulation will require deeper cooperation between regulators of leading economies and a proactive position of the financial industry, as well as the decentralization of financial regulation. However, it is unlikely that this will happen at the global level. Financial stability became a key goal of global financial regulation in the post-crisis period. We consider financial stability as the «tragedy of commons». The article describes the main trends of financial markets regulation after the crisis: transformation of global financial architecture, anti-money laundering and counter-terrorism financing practices (AML/ CT), financial sanctions. The article analyzes the existing failures of modern post-crisis financial regulation: credit crunch, reduction in the effectiveness of monetary policy, regulatory arbitrage, and increased compliance costs (AML/CT legislation, tax legislation, and the sanctions regime). In the future we expect simultaneous trends of harmonization and standardization of requirements in traditional sectors of financial markets (including traditional institutions of the shadow banking sector), but at the same time regulatory arbitrage1 will induce new financial technologies in order to reduce regulatory costs. The crisis triggered by the coronavirus pandemic in 2020 despite its non-financial nature will almost inevitably have a major impact on financial markets and their regulation. Possible steps to eliminate failures in the financial regulation system are proposed, including recommendations for international organizations.

scholarly journals Applications of Financial Technology in Foreign Exchange Market

2021 ◽  
Vol 233 ◽  
pp. 01160
Author(s):  
Wei Li
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Service Industry ◽  
Advanced Technology ◽  
Exchange Market ◽  
Financial Industry ◽  
Block Chain ◽  
Exchange Management ◽  
Financial Technology

Financial technology (Fintech), including a series of advanced technologies such as big data, artificial intelligence and block-chain, has been gradually applied to various industries after years of development and will become the major driver of the future financial industry. As one of the largest financial markets in the world, the traditional foreign exchange service industry is gradually entering the era of fintech, bringing new vitality to the foreign exchange market through advanced technology and improving the efficiency of foreign exchange management. However, while enjoying the opportunities brought by fintech to the foreign exchange field, practitioners in both fintech and the foreign exchange industry should also actively face the challenges and try to build a safe and efficient foreign exchange market environment.

scholarly journals Challenges of Financial Risk Management: AI Applications

2021 ◽  
Author(s):  
Vesna Bogojevic Arsic
Keyword(s):  
Artificial Intelligence ◽  
Risk Management ◽  
Credit Risk ◽  
Financial Risk ◽  
Market Risk ◽  
Credit Risk Management ◽  
Financial Industry ◽  
Financial Risk Management ◽  
Artificial Intelligence Techniques ◽  
Financial Technology

Research Question: This paper reviews different artificial intelligence (AI) techniques application in financial risk management. Motivation: Financial technology has significantly changed the business operations which required transformation of financial industry. The financial risk management needs to be restructured because the methods that have been used in the past became low effective. The artificial intelligence techniques proved their efficiency and contributed to fast, low–cost and improved financial risk management in both financial institutions and companies. Idea: The aim of this paper is to present a state of AI techniques application in financial risk management, as well as to point out the direction in which further application and development could be expected. Data: The analysis was conducted by reviewing various papers, books and reports on AI applications in financial risk management. Tools: The relevant literature systematization was used to provide answers to the question to what extent AI techniques (especially machine learning) could be used in managing financial risk management. Findings: Artificial intelligence largely improved the market risk and credit risk management through data preparation, modelling risk, stress testing and model validation. Artificial intelligence techniques can be useful in data quality assurance, text-mining for data augmentation and fraud detection. The financial technology will continue to affect the financial sector through requiring the adaption to new environment and new business models. Because of that, it could be expected that artificial intelligence will become part of the financial risk management framework. Contribution: This paper provides a review of artificial intelligence applications in market risk management, credit risk management and operational risk management. The paper identified the key AI techniques that could be used for financial risk management improvement because of financial industry transformation.

scholarly journals FINANCIAL TECHNOLOGIES: THE CONCEPT AND TYPES

2019 ◽  
pp. 27-31 ◽  
Author(s):  
A. A. Sitnik
Keyword(s):  
Financial Markets ◽  
Financial Regulation ◽  
New Technologies ◽  
Legal Regulation ◽  
The Other ◽  
Financial Control ◽  
Narrow Sense ◽  
The Subject ◽  
The One ◽  
Financial Technology

The article is devoted to the study of the influence of digital economy on financial law. It is determined that in the context of economy digitalization, new technologies, on the one hand, lead to the expansion of the subject of legal regulation, and, on the other hand, they represent a tool that promotes regulation, administration, financial control and supervision. The paper discusses various types of financial technologies, primarily regulatory (RegTech) and supervisory (SupTech) ones. According to the results of the study, the author concludes that the term regulatory technologies is generally inappropriate. In addition, it should be said that, in a narrow sense, financial technology provides for a set of instruments and methods used exclusively in financial markets and, in broad terms, used in all areas related to financial regulation, control and supervision.

scholarly journals Curriculum Reform and Construction of Financial Engineering under the Background of Financial Technology

2020 ◽  
pp. 23-28
Author(s):  
Chen Zhu ◽  
Liping Chen
Keyword(s):  
Artificial Intelligence ◽  
Curriculum Reform ◽  
Financial Engineering ◽  
Retail Banking ◽  
Technological Innovations ◽  
Current Development ◽  
Financial Industry ◽  
Wealth Management ◽  
Loan Financing ◽  
Financial Technology

With technological innovations such as big data, cloud computing, artificial intelligence, and blockchain, it has been fully applied to payment and settlement, loan financing, wealth management, retail banking, insurance, transaction settlement, etc. In the big financial field, the integration of finance and technology is becoming a new trend in the future development of the financial industry. In the current development of financial technology, the training of financial engineering professionals is also facing many opportunities and challenges. The financial engineering major of our school started late. Although many achievements have been made, there are still some shortcomings. Especially with the development of financial technology, the original curriculum system needs to be adjusted and improved in time, so this article will proceed discuss the reform and construction of financial engineering courses.

Sign in / Sign up

Export Citation Format

Share Document