In the purest sense, you are right that CS is specialized blend of mathematics, but that's no different from calling theoretical physical...
Let me do a disambiguation, there is sufficient difference between Computere Science and Software Engineering, although they are often confused...
It is exactly for that reason that a new class of Quants, "execution strategy quants" are currently in very high demand right now. "slippage",...
Which is why new organizations (new funds, new desks) can get their basic system together quickly, no legacy baggage. Once the systems are...
Heh, this type of stuff happens often. The friday before labor day weekend, the volume was very thin, one blackbox I see tries to induce volume....
Well, a similar well-known story was someone misheard a client's order for 80 contracts as 800, ended up selling 800 contracts (80 client, 720...
I think I remember the incident you are talking about, that was funny.
Also, if the risk module was referring to the same pricing matrix, then the "hedge' sizes would appear to be "correct". Just that the risk module...
ahem, you will be surprised how primitive some of the systems are, especially since something that have been running for 10+ years. Problem isn't...
No, one case I know of was incorrect hedging, so the system would keep on reset the pricing matrix (supposedly a start-up error by the Tokyo desk...
I guess it would depend on the size of the firm. For a ibank, with $50B firm balance sheet, no a few million is not worth the trouble. But for a...
Yes, how big? Many $5-10M or so blow ups, a few $100M+ blow-ups. Almost all can be attributed to poor risk management.
Small trader, retail, even a small manager (< $100M), not worth the trouble. But if the customer is a fairly large hedge fund, fairly large...
Okay, since I used to be on the other side (investment banks), something like this was done in secrecy. This is not paranoia, but rather done...
Yes and no. Like any complex organization, it is hard to generalize what people at an ibank do, similarly, what does a person at IBM do? People...
Well, I was the "asshole" that lead the outsourcing (read, not exactly off-shoring) RFP and vendor analysis that resulted in 3k IT people losing...
Psychologically, it is completely different being an investor vs a speculator. Sure, for most people, trading on their own account won't make...
I would also consider the FX rate fluctuations and the ability to hedge your FX exposure. Without the ability to hedge the FX, the high interest...
From what I have seen, there are several possible causes of bad ticks: 1) Bad aggregation, almost all of the aggregated feed providers...
Well, it is an art (black?) to sniff out what a real-move is and what a move forced by a large automated trading system is.
Separate names with a comma.