Mostly… fixed income and cross product eTrading

August 1, 2008

What do I do with this?

Filed under: OMS / EMS, Uncategorized — Tags: , , , — John Greenan @ 6:44 pm
Picture the scene…
 
You are a high level exec at Sungard.  The GLTrade boys have agreed to sell up and you soon get control.
 
What do you do with it?

October 30, 2007

Swearing

Filed under: Uncategorized — holky @ 1:13 pm

No, its not b*llocks – swearing in the office can have a positive effect … but have you ever wondered who builds the swearword dictionaries for applications?  and how you would go about interviewing an ‘expert’ in this field; clearly you need proof that they truly know their subject, so they are not just an amateur with a couple of big bad words, and they are not just talking a good game of researching words and phrases bound to offend!

August 23, 2007

Cantors on bloomberg

Filed under: Uncategorized — holky @ 7:01 pm

Well, it’s easy to remember anyway….  i dont reckon they’re that bad really.

cantor.jpg

April 18, 2007

a growing blog

Filed under: Uncategorized — holky @ 10:47 am

blimey, a wordpress milestone i guess, as they now say this is a growing blog as of yesterday.

December 14, 2006

Priced for perfection?

Filed under: Uncategorized — holky @ 1:43 pm

So … while we’re all waiting for the funds to get their mandate to trade derivatives.. going back to the point that being able to understand the product is clearly the first step.

In a speech given 13/12 to a group of market participants, Sir John Gieve – Deputy Governor for Financial Stability, Bank of England – said that near-term risks to financial stability remain low. This view reflected benign macroeconomic conditions in the UK and globally, the strength of major financial institutions and the continued resilience of markets.  He did caution, however, that many markets appeared to be ‘priced for perfection’. Implied volatilities in equity markets, bond markets, credit markets and foreign exchange markets are low by historic standards. Risk premia are also at subdued levels. This seems to have encouraged risk taking outside the financial sector, for example, via leveraged corporate borrowing – a vulnerability previously identified by the Bank.

He suggested that while there were good reasons to believe there had been a genuine decrease in macroeconomic volatility, some of the fall in financial market volatility might be driven by the popularity of derivative strategies that amount to selling insurance against unlikely financial events. At a time when “risks in the wider environment are as great as ever…it is not clear to me that these risks are fully priced into the market”.

He concluded by stressing the importance of effective market discipline in current circumstances. “Given the rapid pace of innovation in financial markets and products and the low level of risk premia, investors may need to take particular care to understand the risks they are exposed to. More than in the past, they may need to ask some searching questions about how funds are being invested and how risks are being managed.” He suggested that one approach might be to put greater emphasis on stress test results as well as more conventional risk metrics.

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