Goldman Sachs advances automation by artificial intelligence, human traders from 600 to 2 people

ByOwni / -)

First to fully automate stock trading from Silicon ValleyArtificial intelligence hedge fund"Although Goldman Sachs, one of the world's largest investment banks, employs a large amount of computer engineers, we are promoting the automation of stock trading instead of human traders.

As Goldman Embraces Automation, Even the Masters of the Universe Are Threatened

At the New York headquarters in 2000, 600 traders said they were trading shares in response to orders from large customers, but Marty, who is scheduled to become Goldman Sachs CFO (Chief Financial Officer) Mr. Chavez said, "As of 2017, there are only two traders remaining at the headquarters, which fills vacant seats is the" automatic stock trading program "operated by 200 computer engineers" And at the 2017 CSE Symposium held at Applied Computational Science Laboratory at Harvard University.


Automation of stock trading is accelerating in the past five years, not only in Goldman Sachs, but also in many Wall Street enterprises automation of financial business is proceeding. According to Mr. Chavez, it is moving to automation in fields such as currency trading as well as stock trading. According to the UK research firm Coalition, 45% of financial transactions have been digitized, and it is known that traders of Wall Street, which had earned high salaries, are being replaced by automation programs.

In the world's largest investment bank, including Goldman Sachs, estimates have been made that the average annual bar of sales, trading and research departments employees is $ 500,000 (about 56 million yen) in addition to the bonus, Some 75% of the remuneration that occurs in the city is getting by some "high rewarders". In other words, as the automation progresses and the number of people working in Wall Street has decreased, the per capita compensation has risen and the number of people who distribute profits is small, so the manager will get a higher reward than before That means that.


Stock transactions that Goldman Sachs had done with 600 organizations in 2000 have already been replaced with complex trading algorithms with machine learning capabilities and handled at stock exchanges such as currency trading and futures trading Waves of automation are also flowing into transactions that are not. According to Amrit Shahani, Coalition's director, that the current algorithm is designed to emulate human traders to automate financial transactions in these areas.

Goldman Sachs has already begun currency trading automation, Mr. Chavez explains, "It is possible to replace four traders with one computer engineer." In the current Goldman Sachs, a total of 9,000 people, one third of the total number of employees, are said to be replaced by computer engineers. Mr. Chavez said, "Automation will focus on human skills, such as skills to build sales skills and trust relationships in the future." In the field of human skills, it is considered technically difficult to completely replace top-level employees, but automation of various steps of investment banking is required.

Traders of major investment banks such as Goldman Sachs may earn an average of $ 700,000 per year (about 78 million yen) in some cases, and reducing the number of traders would benefit the bank. Goldman Sachs is planning to launch a new consumer finance platform "Marcus", but Marcus's operations are all operated by software, and no one human being is involved. Marcus was launched in just 12 months with a sense of speed like internal startup, but Mr. Chavez talks about "why there are 600 seats for 600 traders sitting" I will.

In Silicon Valley, Mr. Babak Hojat, who has worked on developing Apple's voice assistant function "Siri", has launched 100% artificial intelligence funded hedge fund by Sentient Technologies, an artificial intelligence software development company. Mr. Hojatt thinks that "human beings are too emotional in the stock market", he seems to believe that it can make a superior advantage of human professional traders by mechanical judgment. According to Bloomberg, some other hedge funds that utilize AI are born, and the day when human traders are gone from Wall Street is getting closer.

in Software, Posted by darkhorse_log