The NSE-ISB Trading Laboratory (Trading Lab) is a joint initiative between the National Stock Exchange (NSE) and the Indian School of Business (ISB) to further the practice of investing. The Trading Lab, with state-of-the-art facilities, offers a dynamic and highly interactive learning environment.
The need for a Trading Lab originated because of the ISB’s commitment to provide a superior and innovative classroom experience, with the most sophisticated financial software, that has significant real-world applications and implications.
The Trading Lab will advance global investment theory by helping developed markets understand emerging markets and helping emerging markets build global investment portfolios. The Trading Lab will collaborate with Public and private financial institutions, particularly those responsible for providing pensions and insurance, who must find ways to provide beneficiaries with larger and more stable streams of income.
Closely linked to generating returns is the tradeoff between expected returns and risk assumed. Risk is implicit in investment and a clear understanding of risk is central to making and managing investments. The Lab is keenly interested in developing and promoting approaches to risk management that help individuals and institutions achieve robust growth. The Lab’s programme of events (conclaves, seminars, roundtables, conferences) will be designed to reinforce the focus on establishing and extending ISB’s reputation for thought-leadership.
The primary objectives of the NSE-ISB Trading Lab include the following:
To increase real-world returns by studying and recommending best practices in asset allocation, equity, fixed income and commodity asset classes, as well as alternative investments.
To study and disseminate knowledge across the dominant investing philosophies underlying passive investing, the endowment model, value investing, and shorter-term trading approaches.
To integrate leading-edge financial technologies in all programmes offered at the ISB, including the flagship Post Graduate Programme in Management (PGP), Executive Education, Certificate Programmes, as well as the Family Business Programme.
To create an environment that fosters financial research by the faculty and students of the ISB, and to help propagate larger research undertakings by various members of the financial community.
To provide training support to business organisations and other institutions globally.
The founders of the Trading Lab envision a multi-disciplinary initiative that draws together experts in Finance, Accounting, Economics, Psychology, Organisational Behaviour and other disciplines, and, in conjunction with the School’s existing departments and Centres of Excellence, advances thinking on investment, broadly in the direction of a “one world” view of investing, founded on global theory and inclusive practice.
The state-of-the-art multi-function Trading Lab creates new opportunities for training, teaching, research, product and curriculum development. The Trading Lab also provides a focal point for research and training in a gamut of financial disciplines including investment strategy and portfolio management; behavioural economics, financial engineering and risk management; trading; and analysis of the market’s microstructure.
In this dynamic economic environment, the NSE-ISB Trading Lab holds the potential to invigorate investment practice not only in India, but also globally. The NSE-ISB Trading Lab offers a glimpse of how the ISB aspires to transform business education over the next decade.