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Production engineering when trading billions of dollars a day [video]

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Re: Production engineering when trading billions of dollars a day [video]

#51

Post by LPisGood »

laidoffamazon wrote: post #47
LPisGood wrote: post #23

Earlier quoted context omitted.

What do you mean by “cognitive elites?” I’ve met some exceptional people: top researchers from top universities from several fields, super well paid engineers working on products you probably use, some of the best hackers an advanced persistent threat actor could ask for; they’re just people. I think if you get a collection of competent, thoughtful people together they would come up with similar solutions to the prob…

Cognitive elites are the MIT and Ivy+ grads that make up Jane Street like the speaker. People like me aren’t getting $5m+ bonuses for being an SRE (I don’t have the pedigree to work at Anthropic either)

I think you put way too much stock into pedigree and what university people went to for undergrad.

Re: Production engineering when trading billions of dollars a day [video]

#52

Post by laidoffamazon »

LPisGood wrote: post #51
laidoffamazon wrote: post #47

Earlier quoted context omitted.

Cognitive elites are the MIT and Ivy+ grads that make up Jane Street like the speaker. People like me aren’t getting $5m+ bonuses for being an SRE (I don’t have the pedigree to work at Anthropic either)

I think you put way too much stock into pedigree and what university people went to for undergrad.

There's not going to be many non-Ivy+ graduates at these companies. I make Jane Street/HRT/etc new grad pay 8 years into my career

Re: Production engineering when trading billions of dollars a day [video]

#53

Post by CryptoWick »

skippyboxedhero wrote: post #43
foobar10000 wrote: post #18

Earlier quoted context omitted.

The EOD reconciliation (and corresponding inability to settle a position in milliseconds) is a feature - it allows "obvious erroneous trade" roll-back mechanisms, etc. Very few people want the financial system to be a contractual suicide pact - they want it to be predictable, but when the unpredictable happens - they want the retail and institutional investor to be protected (the HFT players can go beat each other up…

Right, but EOD also introduces credit risk on the clearing house/bilateral. Also, I would say that probabilistic finality is one of the main issues that tradfi has with crypto (which also exists in the case of margined exchanges, for the reasons you mention). Market participants expect trades to be final, the idea that they can be rolled back is extremely unattractive. The reason you don't need to stop the market in…

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Re: Production engineering when trading billions of dollars a day [video]

#54

Post by foobar10000 »

skippyboxedhero wrote: post #43
foobar10000 wrote: post #18

Earlier quoted context omitted.

The EOD reconciliation (and corresponding inability to settle a position in milliseconds) is a feature - it allows "obvious erroneous trade" roll-back mechanisms, etc. Very few people want the financial system to be a contractual suicide pact - they want it to be predictable, but when the unpredictable happens - they want the retail and institutional investor to be protected (the HFT players can go beat each other up…

Right, but EOD also introduces credit risk on the clearing house/bilateral. Also, I would say that probabilistic finality is one of the main issues that tradfi has with crypto (which also exists in the case of margined exchanges, for the reasons you mention). Market participants expect trades to be final, the idea that they can be rolled back is extremely unattractive. The reason you don't need to stop the market in…

I kindof agree that it is unattractive - but the regulators are perfectly happy with "EOD also introduces credit risk on the clearing house/bilateral." if it allows them to protect retail and institutional investors. They'd rather bail out the clearing houses - which they can do - then have the retail investor lose faith in the markets for a generation or 2 - ala the great crash.

So, to your point - yep, it is not final. But it is unattractive _to the market making and prime brokers and similar players_ which the regulators do not care much about.

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