Friday, September 21, 2007

"Investment banks are scrambling to implement technology that works faster than human operatives. It could put 90% of traders out of jobs

Updated: 10/03/2006

The robots are on the march and there could be little that City traders can do about it.

Research from IBM has predicted that by 2015 there will be 90 per cent fewer traders employed by the top investment banks as they lose their jobs to computer systems.

In what IBM has dubbed the "algorithmic arms race," investment banks are trying to implement the fastest and most sophisticated systems in a bid to secure an advantage.

The systems which are being increasingly used in investment banks and stock exchanges work to a set of rules or algorithms that allow them to respond to changes in market conditions and make the most profitable trades.

Already the London Stock Exchange is increasing the capacity of its systems to cope with a big increase in algorithmic trading."


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