Keep war games out of the dealing rooms
Thursday 16 January 1997
So is BZW deploying the same management strategy in its new war games project with the Defence Research Agency? It sounds like it, with all the talk of dealing rooms as battlefields and the link with the Defence Evaluation and Research Agency of the Ministry of Defence. The idea of a City trader using the same electronic display screen as a fighter pilot to decide when to drop his stock on the market, rather than his bombs on the enemy, sounds as crazy as using Sun Tzu to plan a new factory extension.
However, there is a seed of commonsense within this madness. There is a large number of engineers working in the City, including a real rocket scientist at CSFP. They have brought the computing and mathematical skills essential to their own disciplines to bear on complex market movements and especially the pricing of derivatives. Since much of modern war is to do with rapid evaluation of risk, the disciplines do overlap and there probably is something the City can learn.
But there is also a danger. If all traders acted on the advice, if not the orders, of a computer display, it could bring a new form of instability into the markets. Remember programme trading, and the havoc that wreaked in 1987 when everybody moved the same way at once?
The Independent's live blog of today's Premier League action
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 3 Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 4 Matthew Miller: American sentenced to hard labour in North Korea 'wanted to be Snowden II'
- 5 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
4Chan naked photos leak: Celebrity Twitter reactions to the mass breach of privacy
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Archbishop of Canterbury admits doubts about existence of God
Portuguese academic says British are 'filthy, violent and drunk'
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