Mostly… fixed income and cross product eTrading

October 2, 2006

90% of traders face the axe as computers take control

Filed under: 2015, etrading — holky @ 7:34 pm

The Times (2.10.06) reports that, according to a new report said to be published today, 90% of City traders could face the axe by 2015, as ‘all-electronic algorithmic trading’ comes more to the fore and traders find that they are surplus to requirements. Algorithmic trading is carried out by computers largely unsupervised by human beings and reacting automatically within a split-second to price movements. It is one factor that has sent volumes on all world exchanges rising dramatically in recent years. Nevertheless, London will continue to be a key international financial centre, IBM concludes.

Hereisthecitynews adds this and concludes with a quote about I, Robot  🙂

Is this another IBM paper or the 2015 as mentioned here (If it is a new one can someone please update with the link)

I already work on a trading desk where the strategic focus is much more on building, enhancing and expanding the reach of our technology, connectivity and algorithms.  What we do is scalable.  There is no real reason other than politics that this model can’t begin to be applied throughout the capital markets flow product set right now.  By 2015 the politics will have passed, there will be less traders by then as desk structure like ours becomes the norm.  But this isn’t all doom and gloom jobs lost “I, Robot” just yet…  Along the way to 2015 I suspect quite a few of the 90% ex-traders from the headline will find equally well paid work building the algos that are replacing them at the per-transaction coal face.

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2 Comments »

  1. […] Remember that UB40 tune from the early 80s recession ?  Or, to put the question another way, how much can we automate ?  Mostly’s recent post about only 10% of traders surviving growing computerisation made me think again about the automation of fixed income market making. Of course, the IBM paper he refers to is somewhat self serving: IBM think you need to select a strategic technology partner to meet the challenges of the next 10 year. I wonder who they could be thinking of ? […]

    Pingback by “I am a one in ten…” « Coding the markets — October 3, 2006 @ 11:43 am

  2. this ibm doc is available at http://www.finextra.com/finextra-downloads/newsdocs/IBMAlgorithmic.pdf

    Comment by holky — October 4, 2006 @ 6:29 am


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