Podcast: Damiano Brigo on derivatives, AI, machine learning and more
Genuine artificial intelligence remains "very, very far away", says Imperial College's Brigo
In February, we welcome professor Damiano Brigo, chair of mathematical finance at Imperial College London, as an occasional Risk.net columnist. For this podcast – the first of a monthly series – Brigo visited our office to share his thoughts on the lost causes, current role and future prospects of quantitative finance.
The derivatives market, he says, “has moved from having complex payoffs in a simple system on to simple payoffs in a complex system”, and the models needed in this new environment are still being studied. Elsewhere, quants’ expertise is being applied in a number of newer areas such as risk optimisation, development of machine learning algorithms or analysis of the impact of central clearing on markets.
Brigo sees machine learning and data science having a big impact in finance, but is sceptical of the near-term prospects for artificial intelligence: “We are still very far from a real intelligence and human-like thinking,” he says. Rather, voice recognition, chess and other game-playing applications, or interactive software that is able to answer questions, are simply examples of sophisticated statistical algorithms.
He also explains how the UK government’s plan to change its funding policy for academic research will incentivise projects that have more of an impact on society.
To hear the full interview, listen in the player above, or download. Future podcasts in our Quantcast series will be uploaded to Risk.net. You can also visit the main page here to access all tracks or visit the iTunes store.
Further reading
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Markets
Rethinking P&L attribution for options
A buy-side perspective on how to decompose the P&L of index options is presented
Buy side would welcome more guidance on managing margin calls
FSB report calls for regulators to review existing standards for non-bank liquidity management
Citi halves swaptions book with US retail funds
Counterparty Radar: Mutual funds and ETFs cut exposures by 22% in Q4
Who’s winning the €STR futures race? Depends how you measure
CME, Eurex and Ice all claim to be leading, but experts say it’s too early to pick a winner
CDS review seeks to tackle conflicts ‘elephant’
Isda AGM: Linklaters proposes overhaul for determinations committee - including independent members
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Buy side looks to fill talent gap in yen rates trading
Isda AGM: Japan rate rises spark demand for traders; dealers say inexperience could trigger volatility
JP Morgan’s new way to trade FX overlays
Hybrid execution method allows clients to put dealers in competition via a single trading agreement