Tag Archives: 2008

Goldman Sachs SecDB rescue them in 2008?

Goldman Sachs SecDB saved them in 2008?

Is graph search algo like NEWSQL VoltDB enough to use mimic their trading success?

During the 2009 financial meltdown crisis, many investment banks got hurt pretty bad. It was sometimes their technology backbone that may have saved some of these banks. One bank I’d like to highlight is the world’s largest which is Goldman Sachs. Many may not know this, but don’t be surprised that their risk management database called secDB may have saved their little bottoms. I have put together a list of some of the potential features of this unknown enterprise wide internal database.

 

Check it out here 

 

SecDB and Slang secret sauce to Goldman Sach’s profit and saving grace of the 2008 financial crisis? Quants rules the roost now!

 
If you’re like me who like to copy what is successful for a company, you may want to investigate their technology. As for me in this article above, you will notice that it mentioned graph databases. This is just another fine example where programming can give you HUGE trading edge over all the other wannabees out there. In this case, the closest database that I found with the same functionality as secDB  is in a closed source commercial database called Volt.
You may want to check out some of the details here
Over the years, my final internal database choice came down to a NO-SQL database called Redis. This is completely true open source written in C which means it can be embedded in a clustered database environment. In fact, I wonder if this could challenge some of the world’s fastest trading chip sets like FPGA. Do you remember that article I posted where there were over 4 million transactions per second pumped through a cluster on flash memory? Well if not, you could always find it on my blog.
These are just some bugs I’m putting into your ear. You may want to listen more on future newsletter postings.

 
Ttfn Bryan

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Markowitz analysis of today vs 2008

Markowitz analysis of today vs 2008

From the NYC Contact:

Going over this again something really bothers me. 1) ‘ Dr. Markowitz is certain 2008 was not an outlier event. “… It’s a one-in-40 event. It wasn’t the worst year of return.” ‘ >> Yes because of unprecedented government intervention. Without that it could have easily been a 4 or 5 standard deviation move. 2) ‘ The basic notion that you should worry about risk and return on the portfolio as a whole, and this involves forward looking estimates of means, variances and co-variances, that has not changed. ‘ >> Very simplistic. How good are your estimates? Don’t you need to add the empirical probability of your estimate being correct? what about accounting for market regime change? I guess the above statement assumes that you have done all this.

 

https://www.bnymellon.com/us/en/our-thinking/dr-harry-markowitz-2008-was-not-so-different.jsp

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2015 turning in a bad 2008 trading year?

2015 turning in a bad 2008 trading year?

From CNN, the way it looks we can agree on something according to this data

http://money.cnn.com/2015/10/03/investing/stock-market-worst-year-since-2008/index.html

 

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Proof inside hedge fund billionaire saw the 2008 financial crisis coming

Proof inside hedge fund billionaire saw the 2008 financial crisis coming

Watch this Bllomberg interview with Stan Druckenmiller. He mentioned at the end a bear Stearns analyst show him their schedule in 2005 before 08 hit. In summary, don’t listen to those fools who don’t think this was possible.

http://www.bloomberg.com/news/videos/2015-04-25/stan-druckenmiller-bloomberg-encore-04-24-

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Will next financial meltdown be worst than 2008?

 

Will next financial meltdown be worst than 2008?

A video predicts next financial cycle which will be far worst. There is some political talk here

Inforgraphics: http://biz30.timedoctor.com/odesk-vs-elance-vs-freelancer-and-99designs-infographic/

http://sandipsekhon.com/odesk-vs-freelancer-an-employers-perspective/

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Goldman Sachs SecDB saved them in 2008? Is graph search algo like NEWSQL VoltDB enough to use mimic their trading success?

Goldman Sachs SecDB saved them in 2008? Is graph search algo like NEWSQL VoltDB enough to use mimic their trading success?
Refer to further research

https://quantlabs.net/blog/?s=secdb

The big takeway out of this is there is a potential graph search algo which seems to be to be TRUE secret sauce of the whole thing.
Also, VoltDB could be a close cousin which could be used as a part of good risk management database. Let me know what you think.

Graph search is most likely part of SecDB:

New features and other info:

http://voltdb.com/products/whats-new

Redis vs VoltDB comparison:

http://db-engines.com/en/system/Redis%3BVoltDB

A VoltDB demo:

GitHub Java source code repository:

https://github.com/VoltDB

Is it really 100x faster?

Erlang and VoltDB could be an interest combo for mission control open source middleware:

How does VoltDB rank up against other CEP solutions?

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The Causes of the 2008 Financial Crisis Part 3 by Paul Cottrell

The Causes of the 2008 Financial Crisis Part 3 by Paul Cottrell

http://the-studio-reykjavik.com/blog/2014/11/25/the-causes-of-the-2008-crisis-pt-3-by-paul-cottrell

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The Causes of the 2008 Crisis (Pt 2) by Paul Cottrell

The Causes of the 2008 Crisis (Pt 2) by Paul Cottrell

Let me know what you think of this after part 1. someone already commented on my Facebook page.

http://the-studio-reykjavik.com/blog/2014/11/23/the-causes-of-the-2008-crisis-pt-2-by-paul-cottrell

https://www.facebook.com/groups/quantlabsnet/

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SecDB and SLang secret sauce to Goldman Sach’s profit and saving grace of the 2008 financial crisis? Quants rules the roots now!

SecDB and SLang secret sauce to Goldman Sach’s profit and saving grace of the 2008 financial crisis? Quants rules the roots now!

I like to use Goldman Sachs as a good role model for building out a tech operation built around being indie with your own source code.

About investment banks, Goldman Sachs is your #1 investment banks in the world:

http://en.wikipedia.org/wiki/List_of_investment_banks

https://www.quantnet.com/threads/former-goldman-quant-spills-secret.4316/

http://stackoverflow.com/questions/3392636/slang-goldman-sachs-proprietary-programming-language

http://www.cnbc.com/id/38584613

When you post the sort of items it is always decisions decisions.

After learning from others in various place, it seems your database is key to all your successes. Not models, but software architecture and design patterns to give you the edge. Math strategies and and other technologies are secondary. Just read me my links to see what I mean:
(As always lend me your ears for fedback)

http://news.efinancialcareers.com/ca-en/147434/inside-goldman-sachs-secret-sauce/

http://dealbreaker.com/2013/04/goldman-had-a-quarter/

MF Global Report Shows Limits Of The “Just Write All Your Positions On Post-Its” Method Of Risk Management

http://www.secdb.com/

http://news.efinancialcareers.com/ca-en/174323/rise-quants-goldman-sachs/.

…teams, to the point where it’s the uber-technical guys who are gaining ground at the top. Since the shake-up of Goldman’s senior technology ranks at the tail end of last year – when R. Martin Chavez took over from Steve Scopellite as chief information officer, and Don Duet and Paul Walker were installed as co-heads of technology – the ‘strats’ have been taking over, suggest our sources.

Chavez heralded from Goldman’s ‘strats’ team, which is largely a quantitative function with the ‘core strats’ building complex models across the bank’s trading desks. So did Walker, who joined the bank as a vice president in the FICC strats team in 2001. Most are not pure technologists – heralding from a science, maths and engineering background – but are still very computational.

Nonetheless, Goldman continues to offer a lot of opportunities for technologists – at least 25% of its employees work in tech. Lloyd Blankfein says that the bank is a “technology firm nowaday”, while Walker’s LinkedIn profile invites technologists to get in touch with the bank’s HR teams.

How Math Quants Rule the World: High Frequency Trading

PHD psychologist article?

http://www.psychologytoday.com/blog/good-thinking/201405/how-math-quants-rule-the-world-high-frequency-trading

More SecDB and othe tech stuff:

 

“Best and brightest, SecDB is king ”

http://www.glassdoor.com/Reviews/Employee-Review-Goldman-Sachs-RVW1073827.htm

Former Employee – Equities Trading Strategist in New York, NY

I worked at Goldman Sachs

Pros

– best & brightest + very nice people
– SecDB, major competitive advantge, no other firm has this (altho they tried)
– exceptional quant talents (way smarter than traders)

Cons

– political on top (esp. the business side)
– like all banks, constant hustling
– some useless work just to get exposure or satisfy short term needs

Advice to Management

– better performance review procedure: it’s called 360 degree but in reality still one sided from manager
– make it a true meritocracy and reduce politics

 

http://www.wilmott.com/messageview.cfm?catid=16&threadid=59857

Slang seems to be integrated into C++ on Linux/UNixL

Some job notice descriptions:

http://www.simplyhired.com/job/slang-c-developer-job/performance-resources/tm7j2zx4oi?cid=ioazsyviorodfzazbsmmhfarqfjtjmbu

I will make a HUGE assumption this is for Goldman Sachs in Company: Performance Resources ??

 

Slang/C++ Developer 10666

Location: New York , NY

Group Summary

The Credit Technology team is responsible for systems that facilitate negotiation, approval and capture legal terms that govern counterparty risk. The risk can include trades with increased exposure to a counterparty or to certain events that can cause significant financial or reputational impact to either party. The technology includes building out tools to streamline business processes and modeling of terms in such a way they can be easily integrated with other systems in the firm for the purposes of operations, control, and management of counterparty risk.

The group is a talented mix of developers, architects, and functional analysts who maintain a technology friendly environment where quality of software is given prime importance and align with firm s initiatives on managing counterparty risk. We leverage test-driven development and other agile development practices to deliver quality software the first time out.

We do most development in Java and other proprietary platforms.

Role Summary

We are looking for talented developers interested in finance to build and maintain the applications which manage the firm s counterparty risk and satisfy regulatory requirements. You will gather functional requirements, participate in technical design sessions, and interact with other technology teams within Sales, Trading, Legal, and Controller areas to accurately model the terms and implement efficient workflows to streamline the business processes in the firm. The role will allow you to gain an understanding of various business processes at firm, the funding terms that affect pricing of OTC derivatives and suitability of the client to engage in such transactions. The successful candidate will participate in all phases of a project lifecycle and work with extremely bright and motivated individuals.

The successful individual will develop a UI application to capture client profile by presenting a form or questionnaire to sales and compliance. The application will be developed in slang/secdb and interacts with other systems via messaging, server calls, SQL queries etc. for storage, retrieve reference data and feed into operational flows.

In addition, the project also includes writing batch scripts (mostly in slang ) to reconcile data across multiple systems, notify alerts to users by email, generate reports etc.

Required skills:

Solid programming skills with good algorithmic thinking and data modeling

Programming languages: Slang, C++

Unix/Linux experience

Demonstrated history of technical projects successfully deployed to production

Must be able to gauge and define technical specs for applications supporting the business processes

Ability to understand business processes and make judgments in the technical complexity needed for the application that will support the business processes.

Good communication skills and organizational skills to understand and keep track of requirements as part of interacting with peers.

Some RDBMS experience

 

—-

Is Python used at Goldman?

http://www.goldmansachs.com/a/data/jobs/28392.html

Technology – FICC Technology – Commodities Franchise Front Office Developer (Java, C#, .NET, C++, Python)- Analyst, London

Job id

28392

Location

London

Full/Part Time

Full-time

Apply Now

Job Summary & Responsibilities

The Commodities Technology team in London is seeking a dynamic, entrepreneurial and hands-on individual. The candidate will have the opportunity to work directly with Traders, Sales, Operations and Strategists. This is a great role to get an insight into the commodities business and work closely with end users. The role involves working on a variety of projects such as new products set up, market driven changes, tools to improve productivity/support new business and re-engineer existing applications.

Problem solving ability and good communications skills are the key requirements.

The successful candidate will work on SecDb/Slang with elements of Java/C#/Web Development. This powerful object oriented database and interpreted language is similar to Python, and underpins front office pricing and upstream trade processing across the firm. Full training will be given.

Basic Qualifications

MANDATORY
•4-6 years of commercial experience
•Strong analytical skills
•Good knowledge of Object-Oriented Programming (Java, C#, .NET, C++, Python)
•Excellent communications skills

Preferred Qualifications

•Commodities knowledge
•Experience of a front office / client facing role
•Experience of programming in Python

—–

http://www.goldmansachs.com/a/data/jobs/30291.html

Technology – Trading Shared Services – Analyst Developer (Java, C#, .NET, C++, Python)- Analyst, London

Job id

30291

Location

London

Full/Part Time

Full-time

Apply Now

Job Summary & Responsibilities

Analyst Developer (Java, C#, .NET, C++, Python)

The newly formed Trading Shared Services team in London is seeking a dynamic, pro-active and hands-on individual. The candidate will have the opportunity to work on a broad set of functions across post execution services. Including Clearing & Middleware, Regulatory Reporting and our Core Matching and Trade processing services. The team is functionally aligned so gives the individual a great opportunity to go deep as well as gain a broad exposure across all major OTC derivative asset classes.

With this being a newly formed BU it’s also a great opportunity for the right individual to help shape our future and bring in new expertise as we harmonize teams across the functions we support. Problem solving ability and good communication skills are the key requirements. A strong interest in Agile & Test driven development are also welcome.

The successful candidate will primarily work on SecDb/Slang. This powerful object oriented database and interpreted language is similar to Python, and underpins front office pricing and upstream trade processing across the firm. Full training will be given.
There will also be opportunities to use Java.

Basic Qualifications

• 3+ years of commercial experience.
• Strong analytical skills.
• Good knowledge of an Object-Oriented Programming (Java, C#, .NET, C++, Python).
• Excellent communications skills.
• Pro-active and takes initiative.

Preferred Qualifications

• Degree in an analytical subject. (CS, Maths, Engineering, Finance etc)
• Previous experience in financial technology.

 

 

About investment banks, Goldman Sachs is your #1 investment banks in the world:

http://en.wikipedia.org/wiki/List_of_investment_banks

 

 

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Paul Cottrell explains what happened in the financial crisis meltdown of 2008

Paul Cottrell explains what happened in the financial crisis meltdown of 2008

Have you seen this explanation?

http://the-studio-reykjavik.com/blog/2014/9/2/what-happened-in-2008

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!