Inside the Algorithms of Wall Street

Wired hat einen ziemlich interessanten Artikel über die AI-Systeme der Wall Street, die Gefahren (und Chancen) und die Coder, die dahinterstehen, die sogenannten Quants: Algorithms Take Control of Wall Street.

Last spring, Dow Jones launched a new service called Lexicon, which sends real-time financial news to professional investors. This in itself is not surprising. The company behind The Wall Street Journal and Dow Jones Newswires made its name by publishing the kind of news that moves the stock market. But many of the professional investors subscribing to Lexicon aren’t human—they’re algorithms, the lines of code that govern an increasing amount of global trading activity—and they don’t read news the way humans do. They don’t need their information delivered in the form of a story or even in sentences. They just want data—the hard, actionable information that those words represent. […]

For better or worse, the computers are now in control.

Zu genau diesem Thema hatte ich mir zwischen den Jahren die Doku „Quants: The Alchemists of Wall Street“ vom niederländischen Sender VPRO angesehen, die gibt's komplett auf Youtube:

(Youtube Direktquants)

Quants are the math wizards and computer programmers in the engine room of our global financial system who designed the financial products that almost crashed Wall st. The credit crunch has shown how the global financial system has become increasingly dependent on mathematical models trying to quantify human (economic) behaviour. Now the quants are at the heart of yet another technological revolution in finance: trading at the speed of light.

What are the risks of treating the economy and its markets as a complex machine? Will we be able to keep control of this model-based financial system, or have we created a monster?

A story about greed, fear and randomness from the insides of Wall Street.

Director: Marije Meerman
Research: Gerko Wessel