IIM Calcutta gets Rs.20 crore grant for world class Finance Lab in Union Budget 2011

 | March 03,2011 01:21 pm IST

The Financial Research and Trading Lab (the Finance Lab) at IIM Calcutta was set up in November 2008 to undertake cutting edge research on financial markets using real time high frequency data from financial markets of India and around the world.


The Finance Lab uses a simulator to simulate trading in financial markets using actual prices.

The Lab resources can be used to develop, test trading algorithms, and identify market abuse.

The grant from the Union Finance Ministry of Rs. 20 crore will help the Lab grow into a world-class centre of excellence. In order to achieve this stated objective, the Lab needs to significantly augment its physical infrastructure and procure international database and software.


The Finance Lab will help the financial services industry in India in the following ways:

(a) The Finance Lab will design market surveillance tools (machine learning tools) that will help track market abuse on real time basis.
(b) The Finance Lab will test any new financial innovation that are proposed in the market and report whether the launch of such new product make markets more efficient and price discovery mechanism more transparent.
(c) The Finance Lab will regularly track the commodity market, capture and report speculative behaviour in commodity markets.
(d) The Finance Lab is currently working on news analytics whereby the effect of financial news on asset returns on real time basis is explored. The success of the project can help the market players in designing their trading strategies and the regulator to understand in advance the impact of news on asset returns.
(e) The Finance Lab can identify skills and training needs of financial sector, design and deliver training programmes to meet these requirements.
(f) Organize international conferences and research workshops on new frontiers in finance.
(g) The Lab will offer scholars to bright students who would like to pursue research on financial markets.