As technology has improved in the last decade, financial institutions have developed new technologies, including quantitative trading and cryptocurrency, to enhance their financial products and services. This paper first provides a brief background of quantitative trading and argues for the transactional efficiency of quantitative trading over traditional trading practices; it characterizes quantitative trading as fast and precise. Meanwhile, the study also accounts for the regulatory concerns–including data leakage and platform security–that quantitative trading firms may encounter. This study then establishes a distinction between cryptocurrency and quantitative trading–the former is money-driven, and the latter is data-driven. This paper then discusses the speculative nature of cryptocurrency and addresses its financial concerns citing the FTX collapse. Overall, this paper establishes the argument that quantitative trading supported by technological experts and facilitators offers more advantages than disadvantages compared to cryptocurrency trading. This research concludes that since quantitative trading and cryptocurrency trading are conducted without consideration for international boundaries, they offer bold financial potential as alternatives to traditional banking practices, as long as specific international financial laws are complied with.
| Published in | Economics (Volume 13, Issue 4) |
| DOI | 10.11648/j.eco.20241304.11 |
| Page(s) | 88-99 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Quantitative Finance, Quantitative Trading, Cryptocurrency Trading, Comparative Analysis
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APA Style
Liu, D. (2024). Quantitative Finance and Information Technologies: A Comparative Analysis of Quantitative Trading and Cryptocurrency and Their Regulatory Challenges. Economics, 13(4), 88-99. https://doi.org/10.11648/j.eco.20241304.11
ACS Style
Liu, D. Quantitative Finance and Information Technologies: A Comparative Analysis of Quantitative Trading and Cryptocurrency and Their Regulatory Challenges. Economics. 2024, 13(4), 88-99. doi: 10.11648/j.eco.20241304.11
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Download@article{10.11648/j.eco.20241304.11,
author = {Didi Liu},
title = {Quantitative Finance and Information Technologies: A Comparative Analysis of Quantitative Trading and Cryptocurrency and Their Regulatory Challenges
},
journal = {Economics},
volume = {13},
number = {4},
pages = {88-99},
doi = {10.11648/j.eco.20241304.11},
url = {https://doi.org/10.11648/j.eco.20241304.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20241304.11},
abstract = {As technology has improved in the last decade, financial institutions have developed new technologies, including quantitative trading and cryptocurrency, to enhance their financial products and services. This paper first provides a brief background of quantitative trading and argues for the transactional efficiency of quantitative trading over traditional trading practices; it characterizes quantitative trading as fast and precise. Meanwhile, the study also accounts for the regulatory concerns–including data leakage and platform security–that quantitative trading firms may encounter. This study then establishes a distinction between cryptocurrency and quantitative trading–the former is money-driven, and the latter is data-driven. This paper then discusses the speculative nature of cryptocurrency and addresses its financial concerns citing the FTX collapse. Overall, this paper establishes the argument that quantitative trading supported by technological experts and facilitators offers more advantages than disadvantages compared to cryptocurrency trading. This research concludes that since quantitative trading and cryptocurrency trading are conducted without consideration for international boundaries, they offer bold financial potential as alternatives to traditional banking practices, as long as specific international financial laws are complied with.},
year = {2024}
}
TY - JOUR T1 - Quantitative Finance and Information Technologies: A Comparative Analysis of Quantitative Trading and Cryptocurrency and Their Regulatory Challenges AU - Didi Liu Y1 - 2024/10/10 PY - 2024 N1 - https://doi.org/10.11648/j.eco.20241304.11 DO - 10.11648/j.eco.20241304.11 T2 - Economics JF - Economics JO - Economics SP - 88 EP - 99 PB - Science Publishing Group SN - 2376-6603 UR - https://doi.org/10.11648/j.eco.20241304.11 AB - As technology has improved in the last decade, financial institutions have developed new technologies, including quantitative trading and cryptocurrency, to enhance their financial products and services. This paper first provides a brief background of quantitative trading and argues for the transactional efficiency of quantitative trading over traditional trading practices; it characterizes quantitative trading as fast and precise. Meanwhile, the study also accounts for the regulatory concerns–including data leakage and platform security–that quantitative trading firms may encounter. This study then establishes a distinction between cryptocurrency and quantitative trading–the former is money-driven, and the latter is data-driven. This paper then discusses the speculative nature of cryptocurrency and addresses its financial concerns citing the FTX collapse. Overall, this paper establishes the argument that quantitative trading supported by technological experts and facilitators offers more advantages than disadvantages compared to cryptocurrency trading. This research concludes that since quantitative trading and cryptocurrency trading are conducted without consideration for international boundaries, they offer bold financial potential as alternatives to traditional banking practices, as long as specific international financial laws are complied with. VL - 13 IS - 4 ER -
Oaks Christian School, Oaks Christian School, Westlake Village, United States
