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"Quants" With Supercomputers Run Wall Street

posted by on Wednesday May 24 2017, @07:32AM   Printer-friendly
from the algorithms-Я-us dept.

takyon writes:

According to the Wall Street Journal (non-paywalled version), hedge funds run by quantitative analysts ("quants"), some of whom are utilizing supercomputers, are now dominating stock trading:

In case you didn't know, The Quants Run Wall Street Now, or so says a headline in today's Wall Street Journal. Quant-run hedge funds now control the largest share (27 percent) of stock trading of any investor type, according to the article. That's up from 2010 when quant-based trading was tied with bank trades for the bottom share. Algorithm-based trading is, of course, the 'sine qua non' of hedge funds and has helped lift them to the top of the investing crowd. [...]

Guggenheim Partners LLC built what it calls a "supercomputing cluster" for $1 million at the Lawrence Berkeley National Laboratory in California to help crunch numbers for Guggenheim's quant investment funds, says Marcos Lopez de Prado, a Guggenheim senior managing director. Electricity for the computers costs another $1 million a year.

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  • (Score: 3, Touché) by kaszz on Wednesday May 24 2017, @12:11PM (4 children)

    by kaszz (4211) on Wednesday May 24 2017, @12:11PM (#514759) Journal

    It's good to know that our supercomputing resources are put to good use for humanity .. :p

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  • (Score: 2) by bob_super on Wednesday May 24 2017, @05:03PM (3 children)

    by bob_super (1357) on Wednesday May 24 2017, @05:03PM (#514942)

    Eventually, the billionaires may let the cleanest of us touch the warm datacenter watercooling pipes, in the heart of winter.
    Trickle-down warmth, they'll call it.

    • (Score: 2) by kaszz on Wednesday May 24 2017, @05:34PM (1 child)

      by kaszz (4211) on Wednesday May 24 2017, @05:34PM (#514964) Journal

      Sounds great, they will even provide trickle down food in the form of a wide variation menu inside the trickle down garbage bag ;)

      • (Score: 2) by bob_super on Wednesday May 24 2017, @05:37PM

        by bob_super (1357) on Wednesday May 24 2017, @05:37PM (#514968)

        The trickle-down garbage bag will definitely improve in quality, after they replace the guard dogs with armed drones.

    • (Score: 2) by JoeMerchant on Wednesday May 24 2017, @07:49PM

      by JoeMerchant (3937) on Wednesday May 24 2017, @07:49PM (#515075)

      The problem will come when the Billionaires start writing the rules, making laws as they see fit, deciding who gets medical care, who gets to have children, who gets to live past a certain age, oh.... wait.....

      --
      🌻🌻 [google.com]