Institute for Financial Transparency

Shining a light on the opaque corners of finance

22
May
2017
0

Quants run Wall Street

A recent Wall Street Journal article observed we have reached the time when data-driven traders dominate the financial markets.  The article describes how investors are using artificial intelligence to harness massive amounts of computer power to crunch available data and make buy/sell investment decisions.

This transformation puts a premium on ensuring each security discloses all the information necessary so an investor can know what they own or are thinking of buying.   After all, without good data, investors cannot be expected to make good decisions.

This transformation also ends any discussion about the ability of investors to process all the information disclosed related to a security.  Clearly, computers are not limited in their capacity to crunch numbers and are fully capable of assessing the end of day exposure details for even the largest bank.