Philosophy in Quantitative Finance

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Philosophy in Quantitative Finance

Elie Ayache, CEO and Co-Founder of ITO 33, discusses the place of philosophical thinking in the context of quantitative finance, his early career beginnings and his first encounter with Quantum Mechanics.

Thursday 30 December 2021

0:00 / 0:00

Podcast Description

QuantSpeak host, Dan Tudball, is joined by Elie Ayache, CEO and Co-Founder of ITO 33, to discuss the place of philosophical thinking in the context of quantitative finance, his early career beginnings and his first encounter with Quantum Mechanics.

Topics & Timestamps

[00:00 - 01:15] Guest Introduction: Elie Ayache and Philosophical Finance

[01:15 - 01:31] Company Profile: Ito 33 and Quant Technology

[01:31 - 02:14] Motivation: Philosophy and Quantitative Finance

[02:14 - 03:06] Biographical Origins: Engineering, Markets, and Philosophy

[03:06 - 06:01] Polytechnique, Quantum Mechanics, and Early Market Experience

[06:01 - 07:14] Black Monday 1987 and Philosophy of Quantum Mechanics

[07:14 - 08:07] Philosophy Studies, Influences, and Analytical Philosophy

[08:07 - 11:23] Quantum Probability, Objectivity, and Contextuality

[11:23 - 13:18] Kolmogorov, Derivatives Pricing, and the Limits of Probability

[13:18 - 14:44] Recalibration, Out-of-Model Hedging, and the Practice–Theory Gap

[14:44 - 16:51] Technology, Formalism, and the Need for a Philosophy of Science

[16:51 - 18:31] Contrasting Philosophies: Probability, Truth, and Critique

[18:31 - 19:05] Word Association: Quantum Mechanics and Categorical Thinking

[19:05 - 21:38] Intellectual Influences: Relativity, Economy of Thought, and Radical Ideas

[21:38 - 22:57] Physics Analogies, Deep Thought, and Word Association Game

[22:57 - 26:39] Word 1: Market—Ontology, Creativity, and Historical Process

[26:39 - 28:02] Word 2: Price—From Value to Pricing Function

[28:02 - 34:28] Word 3: Matter—Materiality, Resistance, and Market Surface

[34:28 - 35:12] Forward Motion vs. Backward Narrative

[35:12 - 36:59] Word 4: Contingency—Dependence, Necessity, and Radical Chance

[36:59 - 38:03] Contingency in Philosophy, Probability, and Market Change

[38:03 - 38:47] Closing Remarks.

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