This document discusses the need to analyze financial networks and make sense of large amounts of financial data in order to better understand systemic risk and regulate the financial system. It notes that after the financial crisis, regulators were given expanded mandates to collect more financial data but need ways to process and analyze this data using network-based analytical paradigms. The document then introduces the Financial Network Analysis platform, which is a tool for exploring, analyzing, and visualizing financial networks with the goal of making network data analysis actionable for regulators and researchers.

1. Circuits of Profit6th June 2011 Visualizing Financial Networksnew understanding of the financial system and implications for policy makers Inês Salpico Kimmo SoramäkiSoramäki Networks

2. Context: Aftermath of the financial crisis Understanding of the network nature of the financial system Systemic risk: “too connected to fail”

3. Context: Aftermath of the financial crisis Understanding of the network nature of the financial system Stress and increase of regulation

4. Context: Aftermath of the financial crisis Understanding of the network nature of the financial system Stress and increase of regulation Extended mandate(s) to collect data

5. Supervision Regulation Data

6. Supervision Regulation Data Real world

7. Context: Aftermath of the financial crisis Understanding of the network nature of the financial system Stress and increase of regulation Extended mandate(s) to collect data Need to process and analyze this data

8. Theory Research Supervision Regulation Methods Data

9. Questions: How to make sense of data?

10. Questions: How to make sense of data? How to make data analysis actually operative in supervision and regulation?

11. Theory Research Supervision Regulation New adequate analytical paradigms namely: network Methods Data

12. Questions: How to make sense of data? How to make data analysis actually operative in policy and supervision? How to use analysis to actually see what’s happening in the system?

13. x (You wish!)

14. Intelligence? Financial crisis are different and rare

15. Intelligence? Financial crisis are different and rare Pattern recognition is hard for computers

16. Intelligence? Financial crisis are different and rare Pattern recognition is hard for computers The patterns to be recognized would have to be frequent enough for computers to learn

18. Intelligence? AI - Artificial Intelligence

19. Intelligence? AI - Artificial Intelligence IA - Intelligence Amplification ref: William Ross Ashby (1956) in ‘Introduction to Cybernetics’ Tools that make data and analysis actionable for humans

26. FNA Platform for Exploring Analyzing Visualizing financial networks

27. Paradigm understanding

29. Cloud service

30. REST API (for accessing FNA engine from web applications)

31. Intranet

32. Operative use

33. Integration to databases and user management

34. Browser based GUI

35. Desktop

36. By demand, academic use

37. Command line version available

39. Objectives Provide a tool for time series analysis of network data in finance Provide a platform for building agent based and simulation models Make advances in research available to policy Ease of use, performance and security