Talk: Optiver


News headlines and financial markets

– Joe Wallace

Financial markets are closely connected to what is happening in the world, from geo-political tensions to central bank decisions, specific company announcements and even CEO tweets. Traders therefore use headlines disseminated by news agencies to improve decision making, forecast potential market impacts and balance the associated risks. Optiver is a market maker for various financial products and is therefore naturally linked to wider trends and news. In this talk, I shall give illustrations of the relationship between headlines and markets, explain practical subtleties that complicate the situation, and show examples of mathematical techniques that can be used  to solve parts of this problem.