Overview
Large multinational banks employ a range of financial instruments to manage and mitigate risk, with options being one of the most common. Options are contracts that grant the buyer the right though not the obligation to buy or sell an asset at a predetermined price on a specific date. They are frequently used to hedge against market volatility and prevent overexposure to any single sector.
The goal of this project was to integrate numerous variables such as stock prices, momentum indicators, earnings releases, and 10-K reports to generate aggregated forecasts of future asset prices. These alpha signals needed to be delivered to traders in real time, enabling them to more effectively hedge risk.
Approach
Our client, a large multinational bank, hired DataSpartan to develop an automated Python-based solution, enabling the client to anticipate unusual market movements. This capability enhanced their ability to deliver services while effectively managing associated risks. Interactive graphical interfaces, built in Java Swing and seamlessly integrated with the client’s existing trading floor systems, provided traders with real-time insights to determine the optimal course of action in any market scenario.
Results
DataSpartan delivered both the research findings and an interactive visualization of market movements tailored to the client’s requirements. The tool enables traders to better anticipate market shocks and interpret emerging trends. It is fully integrated into the option traders’ dashboards as a customisable widget.
