Sergey Nadtochiy stands in front of a blackboard with equations written on it. He smiles at the camera.

Sergey Nadtochiy Brings Mathematical Finance Expertise to 麻豆村

By Kirsten Heuring Email Kirsten Heuring

Heidi Opdyke

Equations and probabilities are part of everyday work for Sergey Nadtochiy. Joining 麻豆村鈥檚 mathematical finance group was a logical next step.

鈥淢y work overlaps so much with what is happening at Carnegie Mellon and what people do here,鈥� said Nadtochiy, professor in the Department of Mathematical Sciences. 鈥淚t鈥檚 a perfect place for me in that sense.鈥�

Nadtochiy鈥檚 work is at the intersection of mathematical finance, probability and partial differential equations. He uses the mathematical tools from probability and differential equations to describe how quantities change over time and space 鈥� to examine systems that may or may not have some level of randomness in them, such as the stock market.

A specific example of Nadtochiy鈥檚 research is the study of how an initial shock in a system affects other parts of the same system, such as how one bank defaulting can lead to a larger financial crisis. The equation demonstrates cascading effects that are very similar to those appearing in many other physical and biological phenomena, such as the synchronization of neurons.

鈥淭he beauty of mathematics is that very often you start working on a problem that has a clear interpretation in one discipline, but then you realize the mathematical structure behind it is actually so general, you can find applications in completely different disciplines,鈥� Nadtochiy said.

Nadtochiy brings his interdisciplinary approach to the mathematical finance group at Carnegie Mellon. From 2018 to 2024, he was an associate professor of applied mathematics at the Illinois Institute of Technology and a full professor from 2024-2025. Previously, he was an assistant professor at the University of Michigan from 2012-2018 and a senior postdoctoral research fellow at the University of Oxford.

He has collaborated with Carnegie Mellon faculty members. He said he looks forward to working with more.

Nadtochiy teaches courses for the Master of Science in Computational Finance (MSCF), and he will teach for undergraduate major in computational finance in the spring. He plans to modernize parts of the program鈥檚 curriculum by covering additional relevant topics and adding modern computational methods, which could help students analyze data and create better predictive models.

Prasad Tetali, Alexander M. Knaster Professor and head of the Department of Mathematical Sciences, said the department is fortunate to have Nadtochiy.

鈥淪ergey adds significantly to our strength in financial mathematics, probability and partial differential equations,鈥� Tetali said. 鈥淎long with his great demeanor and strong portfolio in research, effective teaching and mentoring, he brings experience in professional service and connections to the finance industry. As such he will also be an asset to our undergrad and grad degree programs in computational finance.鈥�

Nadtochiy earned his Ph.D. in operations research from Princeton University. He received an NSF CAREER Grant in 2017, NSF Grants in 2014 and 2021 and was awarded the SIAM Activity Group on Financial Mathematics and Engineering Junior Scientist Prize in 2012 from the Society for Industrial and Applied Mathematics.