Hacker News new | ask | show | jobs
by n4r9 503 days ago
Perhaps some start this way. But in terms of the general trend of talented engineers and mathematicians being sucked into this quant vortex, it is a matter of making wealthy people wealthier.
1 comments

Automation in trading makes all investors wealthier via lower fees. Trading costs basically nothing nowadays, and that is because far fewer people are employed to do it.

Obviously, the people who own the automation will want a cut of the rewards, like any other business.

Automation in trading != HFT algorithms

Obviously NASDAQ and electronic trading systems are a good innovation. But firms basically doing arbitrage or exploiting uneven network latency are not that economically productive.

And Jane Street isn't a classic HFT either. Speed isn't their differentiating factor (or at least wasn't in the past).
Absurd statement. Use your big brain CS mind for a second. This is you:

> Inefficient market spreads and network latency is not worth remediating.

> Inneficient market spreads

Well lowering market spreads is all about increasing the returns for capital, and incenctivising overfinancialisation. It's hardly curing cancer is it?

At worst it's actively harmful if you believe that the current state of turbo-financialised capitalism has its drawbacks.

> Network latency

Not really sure what you're talking about but surely spending billions of dollars to bring rtt latencies to 50 micros or whatever is not really a great use of money and top engineering talent. Again, it's playing an arbitrage game but not really delivering any value.

We just have fundamentally different values. People like you are closeted dictators.

I want liquidity, low spreads, price discovery. You seem to forget that “not delivering any value” is just like y’know according to you…

Thanks for not addressing any of my concrete points and instead just calling me "a dictator". Lunatic

EDIT: The funny part is even the exchanges and hft firms agree with me see PLP/speed bumps on exchanges like Eurex lol

Tighter spreads and higher liquidity is not economically productive? I can see arguments both ways.
For me, it's about whether that higher liquidity is really worth using top engineering and mathematical talent.
Well, that's what we have market price signal for to decide.
Do you mean that high salaries indicate a demand in the market? Not much argument there, although it is sometimes the case that large companies hire talent purely to starve competition. But what I'm really questioning is whether those high salaries translate to value to society.