Category Archives: Quant Opinion

Prediction carries on. Morgan Stanley does hiring freeze. 80,000 Wall St layoffs coming over the next 18 months?

Prediction carries on. Morgan Stanley does hiring freeze. 80,000 Wall St layoffs coming over the next 18 months?

As predicted, Morgan Stanley now continues the hiring freeze for investment banking. Goldman Sachs started it and now Morgan Stanley. Next, we will fill the massive layoffs coming? We are talking 80,000 over the next 18 months as predicted earlier.

http://www.bloomberg.com/news/2010-09-27/morgan-stanley-said-to-freeze-hiring-at-investment-bank-for-rest-of-year.html

Did they not just hire a massive amount earlier this year?

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Who has the highest quant algo high frequency traders or program algo traders according to WSJ (Wall Street Journal)?

Who has the highest quant algo high frequency traders or program  algo traders according to WSJ (Wall Street  Journal)?

Here they are as according to the WALL Street Journal (WSJ)?

NEW YORK—Program trading in the week ended Aug. 27 amounted to 29.9% of New York Stock Exchange average daily volume of 2.20 billion shares, or 657.0 million program shares traded per day.

Program trading encompasses a range of portfolio-trading strategies involving the purchase or sale of a basket of at least 15 stocks.

NYSE PROGRAM TRADING

Volume in millions of shares for the week ending

Aug. 27, 2010

INDEX OTHER
TOP 20 FIRMS ARBITRAGE STRATEGIES TOTAL*
Goldman Sachs ….. 442.5 519.4
Morgan Stanley 2.6 360.7 440.3
SG Americas 38.0 225.5 263.5
Wedbush Securities ….. 243.9 243.9
Barclays Capital ….. 205.3 299.6
Deutsche Bank 1.2 199.6 200.8
Credit Suisse 2.2 186.4 316.8
Merrill Lynch ….. 177.5 187.6
RBC Capital 11.6 112.3 123.9
J.P. Morgan ….. 109.1 109.1
Schon-EX ….. 86.1 86.1
UBS Securities ….. 69.3 69.3
ABN Amro ….. 59.9 59.9
BNP Paribas ….. 41.8 41.8
Millenco 0.2 36.1 36.3
Citigroup Global ….. 35.2 42.1
Penson Financial ….. 33.7 33.7
Interactive Brokers 0.2 23.8 24.0
RBS Securities ….. 22.1 22.1
Goldman Sachs Exec. ….. 19.4 19.4
OVERALL TOTAL 79.8 2,812.4 3,284.9
*Total includes crossing session 2
Source: New York Stock Exchange

http://online.wsj.com/article/SB10001424052748704206804575468030400459628.html?mod=WSJ_topics_obama&goback=.gde_1822910_member_30618060

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Are these officially the fastest hardware quant computers especially for high frequency trading? Falcon

Are these officially the fastest hardware quant computers especially for high frequency trading? Falcon

When you look at their client list from Metastock, Metatrader, Ninja Trader, Merill Lynch, E Trade, Cisco, Dunn and Bradsheet. Impressive and seems to be very affordable. Also, they are official hardware supplied to both Meta Trader and Ninja Trader.

http://www.tradingcomputers.com

And no this is not an ad.

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I have updated a new YouTube video interview quant documentary with Paul Wilmott

I have updated a new YouTube video interview quant documentary with Paul Wilmott

It is on the right in the video secion. It a Dutch 45 minute documentary.

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Sorry folks! Goldman Sachs done hiring quant investment bankers for 2010. New trend to appear?

Sorry folks! Goldman Sachs done hiring quant investment bankers for 2010. New trend to appear?
Right from Bloomberg just now!

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Start a quant based brain trust/mindshare in Toronto Canada? Matlab, C#, C++, Java, modelling, strategies

Start a quant based brain trust/mindshare in Toronto Canada? Matlab, C#, C++, Java, modelling, strategies

I just want to focus on the quant stuff of commercial product like:
MATLAB
C++
C#
JAVA
Modelling
Building Strategies
All based on quant stuff.
I also started a Linked In group if interest.
I have started a new Linked In group about Matlab, C++, C#., Java, VBA, Excel

Here is the link:
http://www.linkedin.com/groups?mostPopular=&gid=3427378

Comment below on the Brain Trust for Toronto or just reach me either at the Facebook page or the Linked In group for extra privacy.
Your pal,
Bryan

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Top Global Market Maker list in algo trading. Who are the best quant players?

Top Global Market Maker list in algo trading. Who are the best quant players?

This was found on a Linked In group I belong to:

World Wide Market Makers – Algo Trading Top Players List…….
Barclays
BNP Paribas
CA Cheuvreux
Citi
ConvergEx Group
Credit Suisse
Deutsche Bank
Electronic Securities Processing
Fidelity Capital Markets
Goldman Sachs
HSBC
Instinet
Investment Technology Group
JP Morgan
Knight
Morgan Stanley
Nomura
Numis Securities
Royal Bank of Scotland
Sanford C. Bernstein
Societe Generale
Thomas Weisel Partners
UBS

A detail of this can be downloaded from the A Team:
http://www.a-teamgroup.com/article/algorithmic-trading-directory-2010-edition/

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Who are some of the best recruiters for quant jobs in Toronto and Investment Banking?

Who are some of the best recruiters for quant jobs in Toronto and Investment Banking?

I am a recruiter at Michael Page and I recommend anyone who is looking for a position in capital markets (front/middle/back office) should check www.michaelpage.ca. If you would like additional information on a role you are interested in, call or email the contact at the bottom of the job description. Good luck!
hese recruiting companies arent bad and they more junior capital markets type roles which is what im looking for.
www.michaelpage.com
www.ifgpr.ca
www.ludwigfinancial.ca

www.thorekscott.com , has very senior positions in capital markets and private equity with smaller firms.

I have spoken to a few of them briefly but with work and my MBA exams and presentations being due soon I havent had that much time to research them further.

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How the brutal hiring process works in quant based hedge fund firms?

How the brutal hiring process works in quant based hedge fund firms?
This is from an article posted at fins.com.
The highlights include:
“It’s more and more each year,” said J. Patrick Gorman, cofounder of iFind Group, a New York-based recruiting firm. “We’ve had clients ask for SAT scores from people who have been in the industry for 20 years.”
ltants. Today, between 10% and 15% of the candidates that he places are screened by such professionals, typically at the later stages. The wide-ranging and personal Q&As can take up to six hours.
“I view that as part of an evolution of our business,” Monti said. “More and more firms really try to understand at a granular level how a candidate would fit in the institution.”
As a recently hired New York private-equity worker put it: “The turnover isn’t like it is in banking so they like to make the right decision once.”
. It is not uncommon now for a candidate to sit through 40 interviews before getting an offer.
Excel tests have long been standard for these jobs, but now many would-be quantitative traders are also asked to show off their ability to “code” algorithms, he added.
And candidates say the classic “brain-teaser” questions are more brutally intricate than ever. How big is the pizza market in the United States? How many man-hole covers are there in New York City? How many tennis balls would fit in the new Giants stadium?
Should drugs be legalized? Should a person be able to sell their vote?
“At this point I’ve been asked just about everything,” said a former hedge-fund analyst and recent Columbia Business School graduate who asked not to be named
The most selective firms, according to recruiters, are D.E. Shaw & Co. LP, a New York-based fund of funds known as a “quant shop,”
http://www.fins.com/Finance/Articles/SB128458695851838297/PE-Shops-and-Hedge-Fund-Firms-Raise-Hiring-Hurdles?Type=4&idx=1

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Crash of 87 lead to the world of quant based high frequency trading aka HFT

Crash of 87 lead to the world of quant based high frequency trading aka HFT
Here is a little history lesson provided by CNBC. These are some of the interesting highlights:
On October 19, 1987, the Dow Jones Industrial Average cratered by 23 percent, its biggest one-day decline ever. Stocks were plunging so quickly that Nasdaq market makers—the middlemen who grease the markets’ wheels—stopped picking up the phone. Retail investors who wanted to salvage their portfolios were left out in the cold.
It made it mandatory for market makers to instantly execute trades of 1,000 shares or less by retail investors in its Small Order Execution System, or SOES. Market makers and institutional investors, who usually traded in much bigger chunks of stock, had to wait in line behind the SOES traders.
Since the SOES trades were automated, meaning they received almost instant execution, and were given priority ahead of the rest of the market, a fast-moving trader could move in and out of stocks using SOES at a far-more rapid clip than large investors, generating big profits.
In 1996, Putnam teamed up with several partners to launch a SOES trading room in downtown Chicago. Like Houtkin, he started opening up SOES trading rooms around the country. In order to save money on the expensive Nasdaq terminals required to process SOES trades, orders executed by these satellite branches were routed via the Internet to his central station in Chicago.
This gave Putnam an idea: If he could start matching orders of their traders internally they could create an electronic communications network, or ECN, a relatively new marketplace that had been springing up in the 1990s at trading became more computerized.
And there was one specific ECN whose technology Putnam admired: The Island. T
he Island was also the offshoot of SOES traders. A New York branch of Datek Securities, a fast-growing firm that catered to day traders, had taken SOES trading to a new level, executing trades at unheard-of speeds. Behind the advance were two young whizzes who would go on to revolutionize markets forever: Jeff Citron and Josh Levine.
Citron came to be known as an ace trader, while Levine was the computer-programming genius who would amp up Datek’s system. In 1990, Maschler moved his operation to a small office on Staten Island. It was there that Citron and Levine created a trading system they dubbed Watcher.
The Island quickly gained a reputation as having one of the fastest “matching engines”—the computer system that links together buy and sell orders—on Wall Street. As its popularity grew, it started taking market share away from Nasdaq itself.
Putnam had used The Island and saw its potential. But he still had nowhere near the volume of traders that Datek had. So he came up with an idea: Traders could enter trades on his own ECN, and if no matches were found it would scan through the rest of the market for a match.
hus was born the revolutionary idea of the “smart order router,” a computerized system that constantly monitors the rest of the market for trade matches.
Putnam’s idea, therefore, was to go beyond a single computerized “island” to execute trades to a series of islands linked together electronically. In other words, an “archipelago” of markets. In 1997, he launched the ArchipelagoECN.
At the time, Archipelago was just one of several ECNs struggling for market share. But it grew quickly and soon bagged big investments from firms such asGoldman Sachs [GS 154.04 2.14 (+1.41%) ]. The Island was also on the fast track, eating up Nasdaq market share at a rapid clip as more day traders jumped on the bandwagon during the Internet bubble.
Accelerating the growth of the ECNs were new regulations instituted in the aftermath of a scandal that showed that Nasdaq market makers had been manipulating trades. In 1997, the Nasdaq implemented the Order Handling Rules passed by the Securities and Exchange Commission.
Another spur to electronic trading came in 2000 with “decimalization,” the trading of stocks in penny-wide increments rather than fractions of a dollar.
That meant that stocks could trade at many more points than before, a level of complexity easier handled by computers than the human brain.
Decimalization also cut down on the profitability of making markets, since the bid-ask spread narrowed dramatically, causing many established market makers to close shop—opening up the field for the super-efficient, high-speed firms.
The big exchanges could see the writing on the wall. In 2005, Nasdaq [NDAQ 19.56 -0.14 (-0.71%) ] purchased Inet, which had been formed by the merger of Island with another large ECN, Instinet. At about the same time, the NYSE purchased Archipelago, which had by then become an exchange known as Arca.
Today, the matching engine at Nasdaq is essentially the same one created in the early 1990s by Josh Levine (which many more bells and whistles, of course). The electronic trading platform at NYSE, now part of NYSE Euronext[NYX 29.37 -0.20 (-0.68%) ], is Arca.
Indeed, the computer whizzes have become the dominant players on Wall Street. Earlier this year, Getco, among the largest high-frequency firms, became a designated market maker on the floor of the NYSE, a role formerly held by specialists. This summer, the NYSE opened up a massive computer data center in Mahwah, N.J., to cater to high-speed trading firms.
From: http://www.cnbc.com/id/39038914

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