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The University of Southampton
Centre for Risk Research

Real time model of financial decisions

Development of real-time risk management models of financial decision performance (KTP8952)

In March 2013 a team of academics from the Centre for Risk Research were awarded £148,500 from the Technology Strategy Board (TSB) and the Economic and Social Research Council (ESRC) for a 2 year project to help develop real-time risk management models to predict investors' financial decision behaviour.

Funding partner: LCG
Funding partner: LCG

The project was conducted in partnership with London Capital Group Holdings plc. (LCG, a leading provider of online financial trading services firms) and involved analysing Big Data from multiple sources. As a result, the research team had to employ the University's super-computers to facilitate the development of optimised models.

LCG's offices in central London
LCG's offices in central London

The outputs from this project were designed to help the finance sector optimise risk management strategies when faced with risky and dynamic environments. The project also enhanced LCG's state-of-art risk analysis techniques and provided them with insights into the biased decision-making behaviour which investors often exhibit.

The success of this project led to it being awarded the ‘Certificate of Excellence’ by Technology Strategy Board (TSB) and the highest grade of ‘Outstanding’ by the Knowledge Transfer Partnership Grading Panel. The award from the TSB was in recognition of the project’s contribution to ‘strengthening competitiveness, wealth creation and economic performance of the UK by the enhancement of knowledge and skills in the stimulation of innovation’.

The principle investigator for the project was Professor Ming-Chien (Vanessa) Sung, the co-investigators were Professor Johnnie Johnson, Dr Tiejun Ma, and Dr Stefan Lessmann, and the Research Fellow was Juan-Carlos Moreno-Paredes.

 

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