KEY DETERMINANTS OF ACHIEVING TRUST IN APPLYING BLOCKCHAIN TO EMISSION TRADING IN FINLAND

A thesis presented on the critical moment of sustainability transition especially regarding reducing emission of carbon dioxide. The disruption of blockchain application has become one of the innovations that can facilitate this transition. This thesis research focuses on the investigating the most influential trust determinants of applying blockchain to emission trading system (ETS) in the context of Finland. This is exploratory qualitative research which combines grounded theory applied for eight empirical papers and three semi-structured expert interviews. The interviewees include two Finnish ETS experts and two blockchain application experts. Through the qualitative analysis, the author suggested structural assurance trust, knowledge-based familiarity trust and control-based trust to be the most deterministic trust factors in applying blockchain to emission trading. Meanwhile, situational normality trust, peer-based trust and ethnical trust can also be influential. A sequential model and a pyramid model of different trust factors mentioned have been proposed based on the interpretative findings of interviews. Therewith, a consolidated trust model was suggested involving all the relevant trust factors. Finally, the research results can be highly generalisable towards member countries of EU ETS other than Finland

Essays in High Frequency Trading and Market Structure

High Frequency Trading (HFT) is the use of algorithmic trading technology to gain a speed advantage when operating in financial markets. The increasing gap between the fastest and the slowest players in financial markets raises questions around the efficiency of markets, the strategies players must use to trade effectively and the overall fairness of markets which regulators must maintain. This research explores markets affected by HFT activity from three perspectives. Firstly an updated microstructure model is proposed to allow for empirical exploration of current levels of noise in financial markets, this illustrates current noise levels are not disruptive to dominant trading strategies. Second, a ARCH type model is used to de-compose market data into a series of traders working price levels to demonstrate that in cases of suspected market abuse, regulators can assess the impact individual traders make on price even in fast markets. Finally, a review of various HFT control measures are examined in terms of effectiveness and in light of an ordoliberal benchmark of fairness. The work illustrates the extents to which HFT activity is not yet disruptive, but also shows where HFT can be a conduit for market abuse and provides a series of recommendations around use of circuit breakers, algorithmic governance standards and additional considerations where assets are dual listed in different countries

The effects of Multi bank trading platforms on the foreign exchange market: the case of South Africa

Thesis submitted in fulfilment of the requirements for the degree of Master of Management in Finance and Investment in the Faculty of commerce law and management Wits Business School at University of WitwatersrandSince the floating of Foreign Exchange rates in the 1970’s, the global foreign exchange market has seen a transformation and evolution led largely by the invention of Electronic Trading. The Foreign Exchange market, which was previously opaque, has now been transformed in a manner that now makes the market cheaper to transact in as well as being more transparent than it was previously. This paper analyses the impact of Foreign Exchange Electronic Trading Platforms, with a focus on Multi Bank Trading Platforms, by companies in South Africa. Though this topic has been written about quite a lot from a global or developed market perspective, not much research has been done on this topic in the South African context. A corporate online survey questionnaire was sent out to more than 200 companies operating in South Africa to generate responses with regards to the respective companies views, opinions and beliefs with regards to Electronic Trading. Similarly, a bank online survey questionnaire was sent to all banks in South Africa who can buy and sell Foreign Exchange to corporates in order to gauge the respective banks’ views, opinions and beliefs with regards to Electronic Trading. The research suggests that Multi Bank Trading Platforms would be a welcome addition to treasury departments of companies operating in South Africa. Though Straight Through Processing is the desired state in using Multi Bank Trading Platforms, usage of the platforms without implementing Straight Through Processing is beneficial as the platforms lead to increased price transparency, better audit trail in terms of checking that FX deals are being concluded at the best possible rate, cost reductions, reductions in process risk and efficiency gains when transacting Foreign Exchange deals. The purported disadvantages of the platforms that they increase volatility, that they negatively affect liquidity and that they are bad for the FX market structure seem to be invalid with a majority of corporates and banks disagreeing with the purported disadvantages. Keywords: Foreign Exchange, Electronic Trading, Multi Bank Trading Platforms, Straight Through Processing.GR201

Knowledge society arguments revisited in the semantic technologies era

In the light of high profile governmental and international efforts to realise the knowledge society, I review the arguments made for and against it from a technology standpoint. I focus on advanced knowledge technologies with applications on a large scale and in open- ended environments like the World Wide Web and its ambitious extension, the Semantic Web. I argue for a greater role of social networks in a knowledge society and I explore the recent developments in mechanised trust, knowledge certification, and speculate on their blending with traditional societal institutions. These form the basis of a sketched roadmap for enabling technologies for a knowledge society

On the Combination of Game-Theoretic Learning and Multi Model Adaptive Filters

This paper casts coordination of a team of robots within the framework of game theoretic learning algorithms. In particular a novel variant of fictitious play is proposed, by considering multi-model adaptive filters as a method to estimate other players’ strategies. The proposed algorithm can be used as a coordination mechanism between players when they should take decisions under uncertainty. Each player chooses an action after taking into account the actions of the other players and also the uncertainty. Uncertainty can occur either in terms of noisy observations or various types of other players. In addition, in contrast to other game-theoretic and heuristic algorithms for distributed optimisation, it is not necessary to find the optimal parameters a priori. Various parameter values can be used initially as inputs to different models. Therefore, the resulting decisions will be aggregate results of all the parameter values. Simulations are used to test the performance of the proposed methodology against other game-theoretic learning algorithms.</p

Social construction of IS evaluation: a case study of IT investment appraisal

This study explores the phenomenon of the social construction of IS investment evaluation in the financial services industry. The extensive literature on information systems (IS) evaluation stretches back more than thirty years and it is widely agreed that IS evaluation is an important and complex issue. Constructivist evaluation, which serves to develop the interpretivist strand of the literature, concentrates on the notion that evaluations are the outcomes of an interaction and argumentation process between various interested parties. The purpose of this research is to shed further light on the IS investment evaluation area. Explaining the practice of IS evaluation within the dynamic and technologically sophisticated financial services industry would benefit academics and financial services firms alike. This context is relatively neglected in the existing literature. The chosen case study reflects the demands in the financial services industry to upgrade their infrastructure in order to manage an ever increasing number of transactions, as well as increased regulation. The fieldwork produced extensive data concerning traditional trading, brokerage, high frequency algorithmic trading and transaction clearing. The rapid rise of derivative transactions during the last few years caused problems in terms of clearing and managing the transactions. At the same time, hedge funds‘ growing demand for low latency execution services and changes in regulations increased, pressuring firms in the industry to invest heavily. Actor-network theory (ANT) is used in order to describe and explain the formation of networks between human and non-human actors. The theory‘s specific vocabulary allows IS evaluation to be seen in a new light and the study uses ANT analysis to produce insight into the longstanding problem of IS evaluation, human and non-human interactions and roles within the context if IT investment appraisal. Building on ANT, this thesis is an in-depth case study of the employment process of an IT evaluation method at a global financial services company

Disrupting Finance

This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry