Statistical Physics for Financial & Economic Networks

Financial institutions are highly interconnected through several market instruments (Overnight loans, Credit-Default Swaps, Repos, Derivatives, Equity and Security holdings, and so forth), yet the scientific literature quantifying the impact of such a network structure on financial returns and risk has only recently emerged. Indeed, the relationship between the financial system fragility and its patterns of interconnections has become particularly evident after the global financial crisis. Direct exposures through bilateral contracts and indirect exposures due to common assets holdings are just the simplest examples of how interdependencies can arise. Then, financial distress can propagate between institutions through the channels created by these exposures and spread over the market, leading to amplification effects like default cascades. Indeed, while enlarging the number of connections ensures diversification, thus reducing individual risk, it also fosters interconnectedness, potentially increasing systemic risk. The network-based approach turns out to be particularly powerful for dealing with these issues, for instance allowing to track the reverberation of a credit event or a liquidity squeeze throughout the financial system, to define novel measures of potential capital losses and domino effects, and to identify the most vulnerable institutions.

This workshop, a satellite meeting to NetSci2018, returning for the third edition after being hosted by StatPhys26 and NetSci2017, aims at bringing together researchers (from network theory, economics and finance) and policy makers to discuss the state-of-the-art of research in the field, identify the most relevant and urgent problems, and creating opportunities for new collaborations.

Important Dates

• April 01, 2018: Satellite abstract submission deadline (EXTENDED)
• April 05, 2018: Acceptance notification
• April 10, 2018: NetSci2018 early registration deadline
• May 28, 2018: NetSci2018 late registration deadline
• June 11, 2018: OFCE workshop (see below & dedicated page)
• June 12, 2018: SPFEN satellite symposium

Registration

To join the satellite, registration on the NetSci2018 main conference is mandatory. On site registration will be possible only upon availability.