Where will the next generation of quantitative engineers come from? According to Wall Street pros, these are the elite quant programs.
Quantitative analysis is the fastest growing area on Wall Street. Advanced Trading explores why quants are in such high demand, what the next generation of quants is learning, and how the buy side is putting them to work.
Wall Street firms may be shedding jobs, but they still need quants. Baruch College's Jim Gatheral and Dan Stefanica discuss what's in store for the Quant Class of 2012.
Thanks to electronic markets, high-speed trading and intelligent algorithms, today's buy-side trader must evolve to survive.
- Welcome to the New Quants: Data ScientistsThere's a lot of buzz around the role of the data scientist, which is wrapped up with Big Data and developing new approaches for analysis of financial markets.
- Differences Between Dark and Lit TradingDistinguishing between "dark and lit" trading venues in strategy discussions must consider the order size because small trades parsed algorithmically across venues have a different impact on information leakage than block trades.
- Estimize's Data Licensing Deal with Bloomberg Validates Social FinanceThe crowdsourced earnings estimates platform agreed to license its data for display on the respected Bloomberg Professional service, which is a sign that social finance is a growing trend.
- FlexTrade Integrates EMS with OneMarketDataThe integration with OneMarketData's single solution for complex event processing and tick data will enable users of FlexTrade's EMS to develop strategies based on real-time and historical data.
- Self-Learning Algorithms: The New Frontier for Trading and Market SurveillanceSelf-learning techniques, such as machine learning or artificial intelligence, offer a potential route for smart algos to identify new trading patterns and can also be used to discover new patterns of market abuse.
- HFT: A Clear and Present Danger?In January 2013, Congressman Edward J Markey declared that HFT represents a clear and present danger and should be curtailed immediately. Is he right?
- Capital Markets Cloud Adoption: Food for Thought or Empty Calories?NASDAQ OMX conducted a survey of 44 capital markets firms and technology providers in February 2013, to determine cloud adoption rates, activity and existing concerns inhibiting adoption.
- Options Expands FX Connectivity for Quant Trading FirmsIn response to customer requests, Options expanded connectivity to global FX markets and brokers was completed in the NY2 and NY4 New Jersey data centers, and also upgraded the fiber route between New Jersey and Chicago.
- AQR Picks Exegy for Low Latency Market Data, Feeding its Trading and Research SystemsAQR Capital Management will deploy Exegy's ticker plant and enterprise market data system in a colocation site to process foreign exchange, equities and futures data.
- Quantopian Taps Derivatives Trader as First 'Quant In Residence'To encourage community engagement and build relationships with users, the browser-based algo platform startup said Tim Meggs, a derivatives trader, will become the first participant in its QIR program.
- Spot Trading Promotes Brodsky to CEO RoleChicago-based proprietary trading firm Spot Trading elevated the company's founder and CEO Robert Merrilees to the role of chairman, while naming CFO Stephen Brodsky as the new CEO.
- FX Models Resurrected as Markets Emerge from Cisis ModeComputer-driven funds are seizing on signals suggesting the herd-like "risk-on/risk-off" investment behaviour that has dominated currency trading since 2010 is fading.
- Sun Trading Expands Tech Partnership for Cross-Asset TradingThe proprietary trading firm will use Kx Systems' database to roll out new quant strategies and diversify across multiple asset classes and markets.
- Goldman Tops Global Prime Broker RankingsGoldman Sachs and Credit Suisse have emerged from the financial crisis as the biggest suppliers of brokerage services to the embattled hedge fund industry.
- Fed Intervention Is Poisoning Market DataCentral bank intervention is poisoning market-related and other data sets, disorienting automated trading methods today and for years to come.
- Who Owns The Risk If A Third-Party Algo Goes Rogue?What happens after a broker-dealer or sell-side firm's algo goes rogue? To find out who owns the risk, Advanced Trading spoke with Michael E. Kurzrok, director of equities for the market research firm Woodbine Associates.
- Ask a Broker: Should I Trust Your Algos?After Knight Capital's newest algorithm went rogue, buy side traders have to wonder about the safety and due diligence around their third-party algorithms. Advanced Trading interviewed a broker-dealer - anonymously, of course - on how traders can trust the safety of their trading formulas.
- Allston Trading Hires Ex-SunGard Global Trading Exec as CEOChicago-based proprietary electronic trading firm Allston Trading LLC appointed Raj Mahajan to CEO role, as the firm looks to expand the business and recruit talent.
- Scope of JPMorgan "Whale" Probe WidensA fourth London-based JPMorgan Chase trader is under scrutiny in the investigation by U.S. authorities into the bank's nearly $6 billion trading loss.
Georgia Institute of Technology
University of Pennsylvania