With the hiring of data scientists, advances in cloud computing, and access to open source frameworks for training machine learning models, AI is transforming the trading desk. Already the largest banks have rolled out self-learning algorithms for equities trading.
Banks and asset managers relied on global teams to backup and transfer workloads during the pandemic. But, in moments of crisis, exposure to operational risks, model risks, cybersecurity attacks, and fraud can increase exponentially.
Given the market’s resiliency and traders working from home during the COVID-19-fueled volatility, some market observers have questioned the centralized trading desk mentality that has been pervasive on Wall Street.