wall street


What the Age of AI Means for Wall Street

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"While most organisations recognise that AI is a transformational technology with huge potential impact, their approach to adoption has been cautious. The survey data and white paper demonstrate how to harness the power of AI and successfully increase its adoption by first establishing a clear strategy and framework," said Michael Tae, head of strategy for Broadridge. "At Broadridge, we are focused on what we call'the ABCDs of innovation': AI, blockchain, the Cloud, digital and beyond. This is how we define our continued commitment to driving the innovation roadmap; helping our clients understand and apply next-generation technologies to transform business, optimise efficiency and generate growth.


Can Robots Replace Day Traders on Wall Street? Finance Magnates

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Some 9,000 people, about one-third of Goldman's staff, are computer engineers." Artificial Intelligence is causing massive paradigm shifts across many industries, but its biggest impacts is felt in financial services sector. Simply put, artificial intelligence provides unfair advantage in the financial markets. Nonetheless, AI has limited capability as exemplified in the chess game between Russian chess grandmaster and IBM Deep Blue computer. This piece provides insight into why algorithm trading won't necessarily render human traders useless on Wall Street. In recent years, technology has made it possible to'teach' computers how to trade. Yet day traders continue to remain an integral part of the stock trading markets globally. Apart from specialist niche trading sections where corporations engage in high frequency trading, day trading by robots fails time and time again. But the stock markets behavior constantly changes. Savvy traders can adjust themselves to changes, while adjusting algorithms is too expensive, and time consuming. For that reason and others, day traders still do a better job than any day trading algorithm. Computers are facilitating many of the trades happening on the floor of exchanges globally; yet, the actual task of the algorithms is often limited to analyzing and predicting market trends. The final decision to buy or sell an asset is still often determined by a human. In some instances, the human hits the buy/sell button and in most instances, the human instructs the algorithm to buy X when the price/profit/loss reaches a certain threshold or sell Y when certain parameters are met. Interestingly, Meir Barak, author of The Market Whisperer: A New Approach to Stock Tradingand founder of Tradenet observes that there will always be a place for human traders because the stock market is fluid and dynamic. The fact that humans don't consistently act rationally suggests that computers won't necessarily be adept in the face unexpected market performance. "Let's say a chess grandmaster plays against the best computer in the world.


Artificial Intelligence Is the Key to Understanding Big Tech Firms' Moves

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The actions of tech giants such as Alphabet (GOOGL - Get Report) can seem highly confusing at times. Take, for instance, Google's Q1 report this week, which missed revenue expectations. Observers struggled to understand exactly what had happened. Management mumbled something about having made "product changes" to various advertising products to improve them. That excuse brought little satisfaction to Wall Street analysts, who the next morning grumbled that there was no way to know whether the underperformance would last or was just a one-quarter thing.


Uber Hails a Ride to Wall Street, and More Car News This Week

WIRED

Uber, once the enfant terrible of the tech industry, put on its big kid pants and publicly filed for IPO this week, attempting to prove, once and for all, that it's got its crap together. Its filing reveals a sprawling company that's made strides since ex-CEO Travis Kalanick was dropping Boober jokes back in 2014--but one that also has a few big, hulking problems on the horizon, like fighting drivers on employee classification issues and, you know, achieving profitability. Also in transpo people and companies trying to prove themselves: Tesla goes off-menu for the $35,000 Model 3, ostensibly to shore up cash and streamline production; another industry insider says, yes, self-driving car hype got ahead of reality; and Audi argues its slightly dispiriting E-tron range numbers matter little compared to its luxury features. Let's get you caught up. Why do new premium electric vehicles keep coming up short on range?


The most desirable AI and machine learning jobs on Wall Street

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Senior, PhD-level engineers with a background in artificial intelligence and machine learning may have more leverage than just about anyone on Wall Street. Investment banks are desperate for people with AI experience and are going to no end to bring them aboard, industry experience bedamned. J.P. Morgan recently poached AI specialists from Google, Facebook and two leading research universities in the U.S. Goldman Sachs hired away a machine learning guru from Amazon, while Morgan Stanley hired an AI and cloud engineering expert with the background in fashion. Needless to say, banks are surely sweetening offers to recruit expert AI minds away from tech giants and comfy university positions. That said, there aren't a massive number of AI jobs currently available on Wall Street as use of the technology is just ramping up.


Excuse Me, Why Don't You Watch em Black Monday /em ?

Slate

I get that there's too much TV, I really do. Even so, I can't understand why no one's been talking about Black Monday, the Showtime comedy about Wall Street in the '80s that stars Don Cheadle and Regina Hall. On some level I want to punish those of you who haven't given the show a chance, but instead I'm going to politely ask that, seeing as the first season ended Sunday, you watch the whole thing: Now that it's waiting for you in one bingeable chunk, you really have no excuse. Its co-creator David Caspe (of the fan favorite Happy Endings) suggested as much in an interview with the Hollywood Reporter that doubled as a pitch for viewers to consider a bender: "A lot of times if you don't break out right away in a crazy way, it's between seasons one and two that people find stuff. The show is obviously written as incredibly serialized, and I think in some ways getting to watch a few in a row might be helpful for a viewer."


Artificial intelligence is the next big thing for hedge funds seeking an edge

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Yet nine floors up, in an office bereft of any form of signage, a new artificially intelligent investor is taking shape. This trading robot, developed by a team of academic roboticists, mathematicians, and ex-bankers, is the brainchild of fledgling hedge fund Aidyia, which has been seed-funded by venture capitalist Emanuel Breiter. Scheduled to start trading US equities this year, the team hopes it will deliver returns on the three years and millions of dollars it has taken to build, by turning huge swathes of financial and linguistic data into unique investment strategies. "It's seeing patterns that aren't easy for the human mind to wrap itself around," said Aidyia's co-founder and chief scientist, Ben Goertzel. Computer-assisted trading is nothing new.


Artificial Intelligence Is Changing Banking and Wall Street. Here's What to Expect in 2019.

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New technologies have enabled tremendous evolution in the finance industry, especially over the past decade. Thanks to machine learning and artificial intelligence (AI), investors and consumers are getting access to more innovative tools, new types of financial products and a new potential for growth. So, what kind of impact is AI having on banking and Wall Street, and how might the resulting impact on entrepreneurs evolve in 2019? Some of the best AI developments have been reserved for private banks, professional investors, venture capital firms and other major organizations. But 2019 and beyond will likely bring the trend of more accessibility for consumers, too.


How to Survive Wall Street's Robot Revolution

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Wall Street's robot revolution has begun. JPMorgan Chase & Co. is rolling out a program called LOXM that executes equities trades so well, it's replacing the humans who used to do that. Goldman Sachs is in the midst of automating the initial public offering process. Innovations in financial technology -- fintech -- are creating competition in fields long dominated by the institutions. Vikram Pandit, who ran Citigroup Inc. during the financial crisis, says technological advances could make 30 percent of banking jobs disappear in five years.


Lyft sets itself up to be one of first large tech flotations of 2019

The Guardian

US company Lyft has filed plans with the regulator in Washington for a flotation as it races for funding against Uber, the rival ride-hailing company. In a statement on Thursday, Lyft announced it had submitted a draft registration statement with the US Securities and Exchange Commission (SEC), in a move which sets it up to be one of the first large tech flotations of 2019. The number of shares on offer and the price range for the proposed offering have not yet been determined, Lyft said. The company was valued at $15.1bn (£11.8bn) at its latest funding round in June, when investors led by Fidelity Investments poured $600m into the firm. Uber, by contrast, has been valued at $120bn in recent reports.