CFP last date
20 December 2024
Call for Paper
January Edition
IJCA solicits high quality original research papers for the upcoming January edition of the journal. The last date of research paper submission is 20 December 2024

Submit your paper
Know more
The week's pick
Responsive image
Improved Shuffled Frog Leaping Algorithm with Self-Adaptive Shuffling for Fuzzy Logic PD+G Controller Optimization in Robotic Manipulators

Duc Hoang Nguyen
Random Articles
Reseach Article

Using the Equity Trade Simulator (ETS) to enhance the Compliance Process of Equity Portfolio Management

by Meshal Alhusaynan, Majed Almashari
journal cover thumbnail

International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 185 - Number 41
Year of Publication: 2023
Authors: Meshal Alhusaynan, Majed Almashari
10.5120/ijca2023923217

Meshal Alhusaynan, Majed Almashari . Using the Equity Trade Simulator (ETS) to enhance the Compliance Process of Equity Portfolio Management. International Journal of Computer Applications. 185, 41 ( Nov 2023), 31-37. DOI=10.5120/ijca2023923217

@article{ 10.5120/ijca2023923217,
author = { Meshal Alhusaynan, Majed Almashari },
title = { Using the Equity Trade Simulator (ETS) to enhance the Compliance Process of Equity Portfolio Management },
journal = { International Journal of Computer Applications },
issue_date = { Nov 2023 },
volume = { 185 },
number = { 41 },
month = { Nov },
year = { 2023 },
issn = { 0975-8887 },
pages = { 31-37 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume185/number41/32962-2023923217/ },
doi = { 10.5120/ijca2023923217 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-02-07T01:28:21.846574+05:30
%A Meshal Alhusaynan
%A Majed Almashari
%T Using the Equity Trade Simulator (ETS) to enhance the Compliance Process of Equity Portfolio Management
%J International Journal of Computer Applications
%@ 0975-8887
%V 185
%N 41
%P 31-37
%D 2023
%I Foundation of Computer Science (FCS), NY, USA
Abstract

Portfolio management is a service that seeks to provide many functions to manage portfolios along with applying different compliance and regulation rules. This paper aims to highlight the issues that sophisticated investors face once they monitor their equities portfolios that multiple portfolio managers are managing. The paper also studies the impact of this process in detail and recommends some quick and long-term solutions to its related problems. One of the possible solutions is an Equity Trade simulator (ETS). The ETS is an information system that enables portfolio managers to check the compatibility of their trades with the compliance rules that sophisticated investor has set. It also allows the portfolio manager to import the trade details to the shared data mart after executing it in the market. In addition, the ETS gives the sophisticated investor the capability to analyze the behaviors of all assigned portfolio managers by applying what-if analysis on the rejected trades that do not meet the compliance rules. Furthermore, the ETS allows sophisticated investors to keep track of all the breaches caught by the system while simulating the trade by the portfolio manager. Moreover, the ETS can be enhanced to solve more equities-related issues and extend to include different financial instruments.

References
  1. L. Theron and G. Van Vuuren, "The maximum diversification investment strategy: A portfolio performance comparison," Cogent Economics & Finance, vol. 6, no. 1, p. 1427533, 2018.
  2. J. C. Bogle, "Selecting equity mutual funds," Journal of Portfolio Management, vol. 18, no. 2, p. 94, 1992.
  3. Y. Chen, B. Kelly, and W. Wu, "Sophisticated investors and market efficiency: Evidence from a natural experiment," Journal of Financial Economics, vol. 138, no. 2, pp. 316-341, 2020.
  4. S. D. Stewart, C. D. Piros, and J. C. Heisler, Portfolio Management: Theory and Practice. John Wiley & Sons, 2019.
  5. R. Spiegler, "A simple model of a money-management market with rational and extrapolative investors," European Economic Review, vol. 127, p. 103488, 2020.
  6. J. Blocher and M. Molyboga, "The revealed preference of sophisticated investors," European Financial Management, vol. 23, no. 5, pp. 839-872, 2017.
  7. J. Fang, A. Kempf, and M. Trapp, "Fund manager allocation," Journal of Financial Economics, vol. 111, no. 3, pp. 661-674, 2014.
  8. P. Morel et al., "Fintech in Capital Markets 2018: Boosting Productivity Through Technology Innovation," The Boston Consulting Group. Retrieved December, vol. 1, p. 2019, 2018.
  9. G. Hu and H. Liu, "Application of Data Mining Technology in Portfolio Optimization," in Journal of Physics: Conference Series, 2020, vol. 1648, no. 4, p. 042064: IOP Publishing.
  10. K. Levišauskait, "Investment analysis and portfolio management," Leonardo da Vinci programme project, 2010.
  11. C. P. Jones, Investments: principles and concepts. Wiley, 2010.
  12. F. J. Fabozzi, J. L. Grant, and B. M. Collins, Equity portfolio management. Frank J. Fabozzi Associates, 1999.
  13. M.-C. Hsieh, "DATA-DRIVEN PORTFOLIO OPTIMIZATION WITH DRAWDOWN CONSTRAINTS USING MACHINE LEARNING," Contemporary Perspectives in Data Mining: Volume 4, p. 53, 2020.
  14. G. Heywood, J. Marsland, and G. Morrison, "Practical risk management for equity portfolio managers," British Actuarial Journal, pp. 1061-1140, 2003.
  15. M. E. Björnsson, "A study in portfolio management," brandeis 1998.
  16. C. C. Cox, "A Comparison of Active and Passive Portfolio Management," 2017.
  17. M. HARGRAVE. (2020, 12 Dec). Compliance Department. Available: https://www.investopedia.com/terms/c/compliancedepartment.asp
  18. K. I. Cooperative, "Realizing the value of compliance through greater effectiveness, efficiency, and sustainability,"
  19. M. Teo, "How liquid are liquid hedge funds?," Available at SSRN 1571287, 2010.
  20. N. Bahmani, D. Yamoah, P. Basseer, and F. Rezvani, "Using the analytic hierarchy process to select investment in a heterogenous environment," Mathematical Modelling, vol. 8, pp. 157-162, 1987.
  21. G. Girardi, K. W. Hanley, S. S. Nikolova, L. Pelizzon, and M. Getmansky Sherman, "Portfolio similarity and asset liquidation in the insurance industry," 2018.
  22. M. Khan, "Evaluation of a Real-Time Buying Power Engine for Wealth and Asset Management," 2017.
  23. J. J. Angel, L. E. Harris, and C. S. Spatt, "Equity trading in the 21st century," The Quarterly Journal of Finance, vol. 1, no. 01, pp. 1-53, 2011.
  24. V. K. Bhalla, Investment Management (Security Analysis and Portfolio Management). S. Chand Publishing, 2008.
  25. S. B. Anders, "Four Leading Money Management Apps: Mint, FutureAdvisor, Personal Capital, and Acorns," The CPA Journal, vol. 85, no. 9, p. 64, 2015.
  26. J. Samuel, R. Holowczak, and A. Pelaez, "The effects of technology driven information categories on performance in electronic trading markets," Samuel, J., Holowczak, R., & Pelaez, A.(2017). The Effects Of Technology Driven Information Categories On Performance In Electronic Trading Markets. Journal of Information Technology Management, vol. 28, no. 1-2, p. 1, 2017.
  27. M. Hendayun, E. Yulianto, J. F. Rusdi, A. Setiawan, and B. Ilman, "Extract transform load process in banking reporting system," MethodsX, vol. 8, p. 101260, 2021.
  28. A. Mikhaylov, N. Sokolinskaya, and E. Lopatin, "Asset allocation in equity, fixed-income and cryptocurrency on the base of individual risk sentiment," Investment Management and Financial Innovations, vol. 16, no. 2, pp. 171-181, 2019.
  29. W. F. Sharpe, "Adaptive asset allocation policies," Financial Analysts Journal, vol. 66, no. 3, pp. 45-59, 2010.
  30. H. A. Shawky, N. Dai, and D. Cumming, "Diversification in the hedge fund industry," Journal of Corporate Finance, vol. 18, no. 1, pp. 166-178, 2012.
  31. C. Beuselinck, "Financial Reporting Quality in Private Equity Backed Companies: The Impact of Ownership Concentration," Small Business Economics, 2007.
  32. S. S. Smith, "Digitization and financial reporting–how technology innovation may drive the shift toward continuous accounting," Accounting and Finance Research, vol. 7, no. 3, pp. 240-250, 2018.
  33. G. Radhakrishnan and Research, "Non-experimental research designs: Amenable to nursing contexts," Asian Journal of Nursing Education, vol. 3, no. 1, p. 25, 2013.
  34. C. B. Thompson and E. A. Panacek, "Research study designs: Non-experimental," Air Medical Journal, vol. 26, no. 1, pp. 18-22, 2007.
  35. (May 3, 2021). Bloomberg. Available: https://www.bloomberg.com/
  36. (May, 3, 2021). Reuters. Available: https://www.reuters.com/
  37. (May, 3, 2021). RIMES. Available: https://www.rimes.com/
Index Terms

Computer Science
Information Sciences

Keywords

Investment Equity Compliance Information system Simulator portfolio investors

Powered by PhDFocusTM