Research on the Formation Mechanism of International Financial Market Benchmark Interest Rate Based on Data Mining Technology
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Interest rate marketization is an important link in Chinese financial system reform. As the front end of the interest rate mechanism, establishing and perfecting the market-oriented interest rate formation mechanism will directly affect the effective operation of the financial system and the allocation efficiency of financial resources. However, many financial products, such as floating rate bonds, interest rate swaps and forward transactions, are usually closely linked to the market benchmark interest rate, which is the basis for trading and pricing these financial products. Decision tree is one of the important research aspects in data mining. It analyzes all kinds of massive, complex and noisy data, and provides effective theoretical guidance for the formation mechanism of benchmark interest rate in international financial market. In this paper, data mining technology can find the law behind the formation mechanism of benchmark interest rate in the international financial market from massive financial data, effectively reduce the operational risk of financial institutions, so the financial risk early warning has broad application value and market prospects.
Data mining; International financial markets; Benchmark interest rate; Formation mechanism