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?
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...