Economics

=** -Comptuer Science & Economic$- **= = =

"We need motivated people who can help develop the next generation of algorithmic trading systems. We are always on the lookout for graduates with a solid grounding in computer science and finance." ** - Heath Windcliff, Vice-President, Morgan Stanley, New York **

Computers are in the middle of any economic transaction these days. Some of the higher level computer technology is changing the face of business today includes: data mining and pattern discovery, to enable real-time changes in business models and products and to facilitate improved business decision making; models to enact privacy and security of information to support such uses as customized online advertising; sophisticated interfaces to promote collaborative computing, allowing for multi-authored business documents; distributed computing platforms and models for wireless computing that enable access at any time to any device to promote effective business teamwork; creating intelligent software agents to represent human organizations in electronic marketplaces, leading to more effective business contracts; understanding the social implications and ethical challenges introduced in the face of growing technology in the workplace.

Technology impacts every aspect of day to day operations in many organizations, especially those in the financial services industry – just think of the technology you’ll find in a financial institution, such as a bank:
 * * **E-business**
 * **Banking applications**
 * **Risk Management**
 * **Quality assurance**
 * **Back office**
 * **Compliance**
 * **Wealth management**
 * **Customer relations management** || * **Security**
 * **Web services**
 * **Business intelligence**
 * **Document management**
 * **Portfolio management**
 * **Trading systems**
 * **Wireless**
 * **Etc…** ||

- High-Frequency Trading (HFT)
Definition of 'High-Frequency Trading - HFT: A program trading platform that uses powerful computers to transact a large number of orders at very fast speeds. High-frequency trading uses complex algorithms to analyze multiple markets and execute orders based on market conditions. Typically, the traders with the fastest execution speeds will be more profitable than traders with slower execution speeds. As of 2009, it is estimated more than 50% of exchange volume comes from high-frequency trading orders.

High-frequency trading became most popular when exchanges began to offer incentives for companies to add liquidity to the market. For instance, the New York Stock Exchange has a group of liquidity providers called supplemental liquidly providers (SLPs), which attempt to add competition and liquidity for existing quotes on the exchange. As an __[|incentive]__ to the firm, the NYSE pays a fee or rebate for providing said liquidity. As of 2009, the SLP rebate was $0.0015. Multiply that by millions of transactions per day and you can see where part of the profits for high frequency trading comes from. The SLP was introduced following the collapse of Lehman Brothers in 2008, when liquidity was a major concern for investors.

Read more: [|http://www.investopedia.com/terms/h/high-frequency-trading.asp#ixzz1tG1a8VXF]

- Electronic Commerce - ecommerce
Definition of 'Electronic Commerce - ecommerce':

A type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business.

Ecommerce has allowed firms to establish a market presence, or to enhance an already larger market position, by allowing for a **cheaper** and **more efficient** distribution chain for their products or services. One example of a firm having successfully used ecommerce is Borders. This book store not only has physical stores, but also has an online store where the customer can buy books, CDs and DVDs.

Read more: [|http://www.investopedia.com/terms/e/ecommerce.asp#ixzz1tIcJh32C]

Sources:

What is CFM? []

Robin Cohen, Director's Welcome []

Interface between Computer Science and Economics & Social Sciences (ICES) []

High-Frequency Trading - HFT []

Electronic Commerce - ecommerce [|http://www.investopedia.com/terms/e/ecommerce.asp#ixzz1tIcJh32C]