Automated trading software runs amok.
The perils of ignoring human behavior when modeling reality.
Richard Bookstaber, the quant’s quant, suggests that the CPU- and GPGPU-driven arms race among high-frequency, computer-automated trading shops should, and eventually might, come to a halt.
It’s fascinating to read the post-mortem analysis of the economic meltdown, especially as it relates to the role quantitative analysts and their high-tech financial models played in pushing the industry off a cliff.
A small biotech company thinks it can make trading desks better by eliminating the people.
Today machines manage what we cannot. Are we dependent upon results or processes we do not understand?