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Re: <nettime> The secret financial market only robots can see
Chad Scoville on Tue, 1 Oct 2013 01:50:29 +0200 (CEST)

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Re: <nettime> The secret financial market only robots can see

Thx 2 Armin for an elegant summation on the range of eletronic trading sytems and methodologies. A lot of very excellent posts to this thread.

To Brian's point on the relative applicability of this financial approach, I think by looking at total volumes across all asset classes, perhaps specfically CME Globex, its quite apparent from that data that the levels are continuing to increase.

But still, here the present condition is that transactions conducted on a scale impenetrable to the human gaze and manageable only through highly sophisticated automation. And the scale accounts for a significant percentage of overall global gdp in terms of notional value. It is a fact that movements occur in the single-digit microseconds and capital is accrued proportional to sytem and transport latency.

The level of automation is rudimentary at this stage; it is problematic that from a computational perspective, machines don't quite have the neural complexity to rationalize around all deviations and hence their adaptability is limited. But I know neural-networking research is becoming apart of this field for advanced QR [you can see job positings requesting this skill specifically].

But isn't this expected? Couldn't we all see this coming? The continual derivitization of value to now where it is a function of precision timekeeping - the event becomes zero-point, completely disappearing?

My view is that it will continue, and I'm surprised that we don't as of yet off-world, satellite-based dark venues. I do see the financial world as a second-tier, breakway civilization.

And what about real-time-bidding advertising networks? A deeper extrapolation of value not relegate to the act of seeing / gaze, but rather the potentialization of the gaze? And how will the machines leverage that space?

But his could be the 'ghettoization' of finance - a reversal effect of something taken to an ultimate extreme - whereas it's balkanization becomes abstracted to it's own extinction allowing for a new and perhaps more slow lane approach to resource allocation.

Interesting subjects to discuss indeed.


-----Original Message-----
From: Armin Medosch [mailto:armin {AT} easynet.co.uk]
Sent: Monday, September 30, 2013 09:07 AM
To: 'a moderated mailing list for net criticism'
Subject: Re: <nettime> The secret financial market only robots can see

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