Keeping the robots honest
Human overseers are in short supply in an arena where losses can be crippling within minutes
The robots need minding. But the human monitors needed to make algorithmic trading safe are in short supply.
“There’s no script for algo-trading risk management,” said Jason Conn, head of electronic trading operational risk management at Citi. “We know some of our peers are doing it differently. Some have engaged model risk teams and some have not.”
Speaking at the OpRisk North America conference, Conn said the lack of historical data and personnel was holding the effort back. While banks
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