[This message was posted by John Greenan of http://www.alignment-systems.com <[email protected]> to the "Algorithmic Trading" discussion forum at http://fixprotocol.org/discuss/31. You can reply to it on-line at http://fixprotocol.org/discuss/read/48492c64 - PLEASE DO NOT REPLY BY MAIL.]
Isn't this a case of what the Americans refer to as "Guns don't kill people, people kill people"?? If you give access to the latest sniper / hunter-killer / guerilla / dominator etc algo to a user who has no understanding of the way that an algo works then really isn't this an issue for the head of trading rather than the CTO??? Also, there's a considerable element of talking your own book isn't there: "Debiche, CEO and founder of Princeton, N.J.-based Quantia Capital Management, which advises buy-side firms and technology suppliers on quantitative trading systems ... Debiche said that algorithms need to be certified...certification, ideally, would be handled by a third party not conflicted by the need to approve algorithms and start collecting commissions as soon as possible." Oh, so maybe a firm which advises buy-side firms on quantitative trading systems???? <takes off cynics hat and walks away from keyboard> > May 7, 2010 Katherine Heires @ securitiesindustry.com > > While trading algorithms are regularly praised for their speed and > efficiency, a growing contingent of professional traders, financial > engineers, consultants and academics say they are being misused, or are > faulty from the start. Their answer? Establish best practices and > increase training to keep algorithms from doing more damage than good. > > The impetus for the movement is the fear that the availability of > sophisticated trading strategies to a wider audience with varying levels > of expertise could cause havoc in the markets--and already has, in the > view of many. If the industry does not do something to fix the problem, > then regulators may have to take action, with potentially disastrous > results for the algorithmic trading business. > > "If you are a professional trading firm, you have to certify that you > are following the FIX protocol in your trading activities. But there is > no equivalent to that--a driver's license, so to speak--for algorithmic > trading," pointed out Michel Debiche, a veteran of the proprietary > trading desks of CIBC World Markets, Daiwa Securities America and > Credit Suisse. > > Full article :- > > http://www.securitiesindustry.com/news/-25303-1.html?zkPrintable=true > > Is there any Algo certification presently available in FIXProtocol ? If > yes, can I have the URL of the relevant documents ? If no, is there any > plan to create an algorithmic trading certification test suite ? > > Regards, > K. Mahesh [You can unsubscribe from this discussion group by sending a message to mailto:[email protected]] -- You received this message because you are subscribed to the Google Groups "Financial Information eXchange" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/fix-protocol?hl=en.
