Shaping tomorrow's world: finance

Researchers at X are pushing forward mathematical research in the financial field. At the Applied Mathematics Center, Mathieu Rosenbaum has developed a method to fix optimum tick sizes, i.e. the minimum price difference authorized between two transactions on trading platforms. With a view to regulating high frequency trading, this approach is now being used around the world, and in particular as part of a joint project with the AMF, the French financial markets regulator. Another team has developed, with the Société Générale, the UPMC and the École des Ponts et Chaussées, a new mathematical theory, martingale optimal transport, for building more prudent, more robust strategies for stock market investments. This approach provides large institutional investors with access to quantitative tools for more virtuous market risk management. In the economics teaching and research department, Olivier Gossner has been carrying out some fundamental research work based on game theory to shed some light on the influence of anticipation and agent coordination phenomena on financial stability. This research shows that giving economic agents clearer information on banking fundamentals, combined with the possibility for agents to withdraw their money at any time, can be detrimental to banking stabilization.