Keeping the robots honest
The human overseers are in short supply in an arena where the losses can be crippling in 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, at the OpRisk North America conference on June 18. “We know some of our peers are doing it differently. Some have engaged model risk teams and some have not.”
Conn said the lack of historical data and personnel was holding back the effort. While banks
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