NEW YORK, May 21, 2019 /PRNewswire/ -- A global leader in online multi-asset trading services and currency data and analytics, OANDA has partnered with the prestigious Fields Institute for Research in Mathematical Sciences to identify ways to reduce the cost of trading during periods of high market volatility. The partnership aims to provide more accurate foreign exchange volatility predictions, enabling OANDA to better hedge their positions and manage risk, resulting in tighter spreads for clients, especially during critical market events.
Conducted at a recent Fields-China Industrial Problem-Solving Workshop in Shanghai, phase one of this partnership examined the relationship between volatility regimes, market events, and changes in volume. In particular, the study aimed to provide insights into the dynamics of FX volatility and the reaction to known market events, because knowledge of both the emergent patterns and future state of volatility can improve hedge effectiveness, adding value to client offerings.
Neil McDonald, OANDA's Head of Trading, said, "While OANDA has long been committed to tight spreads and transparent pricing, the markets can experience extreme volatility at times, which obviously impacts the prices we quote. As a result, we're pleased to work with The Fields Institute to identify ways we can better predict market volatility, with a view to enabling us to offer the tightest spreads possible and reduce the cost of trading on our institutional-grade platform, even during major events."
In the coming months, OANDA will further build on their relationship with the Fields Institute, partnering with Matheus Grasselli and Thomas Hurd of McMaster University, and Sebastian Jaimungal of the University of Toronto to establish a new Systemic Risk Analytics lab as part of the Institute's Centre for Quantitative Analysis and Modelling (Fields-CQAM). Director of CQAM, Huaxiong Huang, said, "Fields-CQAM collaborates with innovative companies to utilize mathematical research to benefit the private and public sectors. As such, we are pleased that OANDA will join the Fields family and play a significant role in promoting advanced research and training at CQAM."
Founded in 1996, OANDA was the first company to share exchange rate data free of charge on the Internet, launching an FX trading platform that helped pioneer the development of web-based currency trading five years later. Today, the firm provides online multi-asset trading, currency data and analytics to retail and corporate clients, demonstrating an unrivalled expertise in foreign exchange. With regulated entities in six of the world's most active financial markets, OANDA remains dedicated to transforming the business of foreign exchange. For more information, please visit oanda.com or follow us on Twitter, Facebook or YouTube.
About the Fields Institute
The Fields Institute is a non-profit center for mathematical activity, based at the University of Toronto. As a hub that provides a supportive and stimulating environment for mathematics innovation and education, the Institute's mission is to bring together mathematicians from across the globe to develop the mathematics that will shape the future. To learn more about the Institute's programs, please visit www.fields.utoronto.ca
Fields-CQAM is a network of academic-industry laboratories, their international collaborators, student trainees, and the industrial partners able to efficiently commercialize applied mathematical research for the benefit of the broader economy. These province wide innovation clusters address the expanding need for data analytics in modern industry, and transfer talent, challenges, and solutions between Fields-CQAM and its broader receptor community. Their vision? To make Ontario the international leader in developing and deploying advanced mathematical methodologies for the emerging knowledge economy.