Welcome to the MoneyScience Weekly Digest! To get a copy in your email box every Friday, you can SIGN UP HERE, or to see previous editions go HERE.

Register at MoneyScience to:

• Build a profile, comment on content, start or join a group.
• Post Blogs, Media and Research or Bookmark external resources.
• Follow other Users and get notified when they contribute.
• Follow tags and track when relevent content is posted to the site.
• Build a dashboard, customise your experience, contribute a widget.

Featured | Sponsored | Announcements | Finance and Banking | Hedge Funds | Financial Technology | Science and General Interest | Research

Featured

• The Complete MoneyScience RSS Feed has been refurbished bit.ly/696yX
• Market Data Sales Drop In Market Slowdown - Also: "Algorithmic trading doesn’t require a terminal" bit.ly/yWjO6c
• Mathematical Constraints on Financially Viable Public Policy - bit.ly/xefsud
• New Research on Investor Clustering in Stock Market Networks uses Nokia data bit.ly/z0xvlK
• Research - Executive Turnover in the Stock-Option Backdating Wave: The Impact of Social Context - bit.ly/zmiOgp
• CDS data and open source ratings - bit.ly/wRTF2D
• Blaming Capitalism for Corporatism - Edmund S. Phelps and Saifedean Ammous - bit.ly/ArTMPk @prosyn
• Credit contagion between financial systems - bit.ly/xHCiw4 - RT @alea_
• Bloomberg goes open source with data distribution API - bit.ly/xZomzd
• The Future of Banking: Free E-Book edited by Thorsten Beck - bit.ly/xJ1RBw
• Next-generation system-wide liquidity stress testing - bit.ly/vZKXis
• Quick Report on the first Non Equilibrium Social Science meeting - bit.ly/waeESb
• Satyajit Das on Model #Risk bit.ly/wobjRt
• Abnormal Returns offer a Pre-filing Facebook IPO linkfest bit.ly/zkZKWk
• The most widely repeated superlative about the #Facebook IPO: it will create 1,000 overnight millionaires on.wsj.com/ygZLAu
• Limit Orders, on the Crumbling Edge of Behavioral Finance bit.ly/y2R1on - @Psyfitec
• IQ, Trading Behavior, and Performance - bit.ly/zSZGAg
• Video - Why Economics Needs the History of Thought bit.ly/otwDS8
• Dumbed-down highbrow: How Financial Correspondants became Celebrities bit.ly/A9i8F0
• A tipping point for the spread of ideas- bit.ly/qzXcJB
• Getting up to Speed on the Financial Crisis: A One-Weekend-Reader's Guide - bit.ly/y8FtMY - Via @SSRN
• New Research on Neuroeconomics, Dopamine Genes and Professional Wall Street Traders bit.ly/x1f0rW - Via @JimMahar
• People of Quant Research @Quantivity - bit.ly/wAzJg0
• BBC Radio: The Long View compares contemporary Greece with the sovereign default of England's Edward III in 1340 http://bbc.in/zJTKuD
• From Economics to Psychological Science: The Mechanics of Choice - bit.ly/zI0yjq via @AbnormalReturns
• This may be old, but its still relevant: 5 Questions for Facebook Investors ritholtz.com/blog/2011/01/5…
• Pretty strong words: A "corruption of analytical philosophy"? The Academic argument for high executive pay. bit.ly/AsE0i7
• CEO Incentives: It's Not How Much You Pay, But How - Michael Jenson and Kevin Murphey (1990) bit.ly/Ad2cd3
• Behind the scenes @ #Davos one of the biggest debates concerned the ongoing deglobalization of finance on.wsj.com/AoTssJ @Simon_Nixon

Sponsored

• Upcoming Training - Risk and the CCP - bit.ly/yi6sty - Capital Markets Academy
• Upcoming Training: Financial Markets Regulation - bit.ly/xKraIs - Capital Markets Academy
• RT @TandF_Economics "What drives stock prices? Fundamentals, bubbles & investor behaviour" - bit.ly/zfncCW
• 2012 Course Catalogue bit.ly/rWp0EA - New York Institute of Finance
• 2012 courses: bit.ly/xTHedA - London Metal Exchange
• Wiley Finance - Free Sample Chapters from Emanuel Derman, Pablo Triana, Michael Covel, Mike Mayo and many more!

Announcements

• Bruno Dupire at the Fields Institute Quantitative Finance Seminar series - bit.ly/whDMRP
• In case you've tried (and failed) to register at MoneyScience recently. We've fixed the page! bit.ly/xkRcAE
• Call for Papers - Quantitative Finance - Special Issue on ‘Commodities’ - http://t.co/J221wtzl
• New and Updated! Financial Technology Focus: The RSS Feed - aggregating FinTech content from MoneyScience http://t.co/PnjgQ9ey
• New and Updated! The Complete MoneyScience RSS
• New and Updated! Financial Research Focus - latest published, latest preprints and additions to our library bit.ly/zI59ja
• In case you missed it, last week in MoneyScience - Digest 27/1/12 - bit.ly/y84jTd

Finance and Banking

• Voices in Finance: Equity finance banker: 'Don't underestimate the Japanese banks' - bit.ly/A8gyMf
• Voices in Finance: Banking intern: 'Why finance? I am a nerd' - bit.ly/wGBh1O
• Hedging on roads: Weather Derivatives in the UK bit.ly/xSJP1H
• Review of "Models. Behaving. Badly" by @EmanuelDerman bit.ly/A5b1ZK
• Where did this narrative come from? "Did Germany sow the seeds of the eurozone debt crisis?" bbc.in/zY7lBy
• “...low-risk investment with high performances...” - chosen with guidance from God. econ.st/xsfWtA
• Swiss Investigation on interbank lending: "collusion between derivative traders might have influenced the rates" bbc.in/zN12mT
• UBS faces formal FSA investigation after Kweku Adoboli charges bit.ly/xqrghn
• The strongest indications yet of an ongoing transformation in the distribution of venture financing bit.ly/wapCcY - @Pandodaily
• The media frenzy about RBS bonuses and Fred Goodwin's knighthood is a sideshow bit.ly/zQzR9K - @QFINANCEnews
• EU regulators block tie-up of Deutsche Boerse & NYSE Euronext to prevent stranglehold on European futures market bit.ly/xLtreU
• Stock values rise when companies disclose 'green' information, study finds - bit.ly/w6mbhh
• Obama’s plea to ban Congressional insider trading is already facing stiff resistance from lawmakers bit.ly/zoqyvL
• What’s wrong with Britain? bit.ly/wdgXlY - @Noahpinion
• Mathbabe on Complexity and transparency in finance - bit.ly/yxRP0x
• Robert Peston: Bankers' pay is ludicrous and people who hoard all their wealth are bonkers' bit.ly/xPZ60X @peston
• RT @Ian_Fraser: Listening to @jilltreanor and @nilspratley discuss Fred Goodwin's disinvestiture bit.ly/x9HMAx <-- Guardian podcast
• Four radical Islamists plead guilty to plotting to detonate bomb at London Stock Exchange. Details soon bbc.in/xun1Sn
• Crikey - Former Royal Bank of Scotland boss Fred Goodwin has had his knighthood removed bbc.in/wvXTub
• Fred Goodwin's knighthood: Alistair Darling leads the backlash - bit.ly/yqj9aH
• RBS Chairman Sir Philip Hampton will not receive a £1.4m share award because he had not met performance targets bit.ly/zhZvWc
• I swear we hear this from the auction houses once or twice a year: Investors turn to the art market bit.ly/yCJCqG
• 2011 backtest results (without transaction costs) of running Andrew Lo's prototype mean-reversion model bit.ly/yzreAz
• Why Income Inequality Is Killing the US Economy bit.ly/A9JVky - @QFINANCEnews
• How long do you give Hester before he departs for a bank where he can keep his bonus? RBS boss rejects £1m bonus bbc.in/ymnnma
• "Can You Sum Up Your Investing Philosophy in 10 Words?" on.wsj.com/zgqTxs - @ReformedBroker

Hedge Funds

• Are the hedge fund and private equity boys pulling a fast one? bit.ly/ACNIwn - RT @QFINANCEnews
• Buttonwood: Rich managers, poor clients - "A Devestating Analysis of Hedge Fund Returns" econ.st/xtKNuj
• What if Returns Don't Reach 7%? - Falkenblog at MoneyScience bit.ly/xafc12
• Self-selection bias in voluntarily reported hedge fund performance data - bit.ly/vQVTHE

Financial Technology

• Machine Learning Algorithms Comparison Table - bit.ly/w0SK8Y
• Via @CarlCarrie - Brics catch high-frequency trading habit - bit.ly/wjyyxq
• Hackers outwit online banking identity security systems bbc.in/zMMtEC
• RT @TimHarford: Bitcoin 's comeback: should Western Union be afraid? (Wired UK) bit.ly/y81Ulc
• @marketpsych Newsletter: On crowd enthusiasm, IPO pricing, the emergence of Big Data and social prediction - bit.ly/wL8vEG
• Misys in merger talks with Swiss rival Temenos but news disappoints speculators bit.ly/xnpFjj
• Crime, bitcoin and the dark web - bbc.in/yVMhvO
• Bitcoin: immersive or subversive? via The Financial Services Club's blog at MoneyScience bit.ly/x5FCED
• Beyond Collocation: Al Moore talks to Future Banking - bit.ly/xRhV8A
• Fortunately the methods of those who can handle big data are neither grotesque nor incomprehensible - bit.ly/zKPILp
• Silicon Valley is percolating with new startups that help people manage their money and portfolios online bit.ly/wMXMbA
• Why the era of big data is just beginning zite.to/yqBUM1

Science and General Interest

• Research suggests a significant payoff for firms that set up online communities bit.ly/zk4QOf - Consider Spine: bit.ly/xklVf2
• Facebook: The Value of Information in the Information Age - bit.ly/wCjFxW
• The Risks of Social Media: Developing a Social Media Crisis Response Plan - bit.ly/xPBL5W @riskmgmt
• Robin Hanson’s theory of young consultants bit.ly/wdwDzC - Via @margrev
• "There are going to be thousands of advisers who lose a lot of money on Facebook." - Andrew Stoltmann bit.ly/y1pEJe
• When you think of the world's most expensive cities, the Angolan capital of Luanda seems an unlikely contender bbc.in/wwINUb
• In the UK, only 6% of public service cuts have happened yet - bit.ly/z3w4Ky
• An argument for scrapping copper coins - bit.ly/zvgcp9
• More than 50 collaborators at over 30 scientific organizations agree on common standards of dataset descriptions bit.ly/zCFcNW
• The Faculty of 1000 organizes what's been termed "post-publication peer review" - bit.ly/xERgce more here: bit.ly/zhKZFd
• So which 16 Scientists put their names to this statement on Climate Change (on.wsj.com/znQll6) - bit.ly/zDZCoO
• Crumbs! Specialized S-Works McLaren Venge Bicycle 2012 - £12k - bit.ly/ABVSnL

Research

• "Elsevier’s economic case is lacking" bit.ly/x5nU0X RT @Digitopoly
• Growing Support for an Elsevier Boycott: Cosma Shalizi has a view - bit.ly/wGWLKC
• Computing dynamic stochastic general equilibrium models with recursive preferences and stochastic volatility bit.ly/Ave5un
• Foreign banks and the global financial crisis: Investment and lending behaviour - bit.ly/wGaLQ4
• Copula Dependence Structure on Stock Market with Application to Risk - @Asymptotix bit.ly/ADsds3
• What Post-Crisis Changes Does the Economics Discipline Need?: Beware of Theory Envy! bit.ly/x0p1Jq
• "Grand Challenge" White Papers for Future Research in the Social, Behavioral & Economic Sciences bit.ly/rk7dql
• On the nature of genius, trading and hindsight - Phil Maymin on his paper "Markets are Efficient if and only if P = NP" bit.ly/nV0UAj

• arXiv: On return-volatility correlation in financial dynamics. bit.ly/yUqzah
• arXiv: Cross-correlation in financial dynamics.bit.ly/A0Mwp9
• arXiv: Correlation, Network and Multifractal Analysis of Global Financial Indices.bit.ly/AxfgQW
• arXiv: A Trajectorial Interpretation of Doob's Martingale Inequalities.bit.ly/w2jTfN
• arXiv: The Evolution of Market Efficiency and its Periodicity. bit.ly/xI9fTV
• arXiv: Heavy-tails in economic data: fundamental assumptions, modelling and analysis.bit.ly/w95GZj
• arXiv: Withdrawal Guarantees - A Semi-Static Hedging Approach.bit.ly/yH5Z3W
• arXiv: Portfolio liquidation in dark pools in continuous time. bit.ly/wC1Zks
• arXiv: Modeling electricity spot prices using mean-reverting multifractal processes.bit.ly/wxUBRb
• arXiv: Mathematical Constraints on Financially Viable Public Policy. bit.ly/yz40Bq
• arXiv: Anti-correlation and subsector structure in financial systems.bit.ly/zAGy97
• arXiv: Self-dual continuous processes.bit.ly/y7CStD
• arXiv: Asymmetric correlation matrices: an analysis of financial data. bit.ly/wXWWJ7
• arXiv: A Random Matrix Approach to Dynamic Factors in macroeconomic data.bit.ly/zDOtnr
• arXiv: Learning Performance of Prediction Markets with Kelly Bettors. bit.ly/xsjxlJ
• arXiv: Heavy-tail driven by memory.bit.ly/yOmBV8