Pairs Trading at Bright Trading

P

Prez

Don, after reading the transcript of SocGen's conference call, I now am ready to trade pairs


10.55 - “the risk and control system is not faulty….is not about taking on enormous directional positions up or down….not about speculation. Arbitration is what we do, with very small positions and limits.”

“He had the official SG book which allows him to carry out business…..uses other operations which cancel out the first positions…if long the index, then I’ll be short the other side so the amount seems reasonable….operations carried out as concealed operations are fictitious operations….he has this great skill of replacing them in accordance with the control procedures….he knows the control timetable and that positions are controlled on the basis of results….and is intelligent enough to transfer the fictitious hedge..”

You wouldn't allow this...:p

Prez
 
Don really understands this Pair stuff and Rob from Canada who works with Bright is a very sharp cookie. The guy from Zoe Trading to has his own unique style to Pair trading in Austin, Tx who works with Don I believe also.
 
Quote from Prez:

Don, after reading the transcript of SocGen's conference call, I now am ready to trade pairs


10.55 - “the risk and control system is not faulty….is not about taking on enormous directional positions up or down….not about speculation. Arbitration is what we do, with very small positions and limits.”

“He had the official SG book which allows him to carry out business…..uses other operations which cancel out the first positions…if long the index, then I’ll be short the other side so the amount seems reasonable….operations carried out as concealed operations are fictitious operations….he has this great skill of replacing them in accordance with the control procedures….he knows the control timetable and that positions are controlled on the basis of results….and is intelligent enough to transfer the fictitious hedge..”

You wouldn't allow this...:p

Prez
More...

LOL, yeah "Plain Vanilla Trader"

http://www.nytimes.com/2008/01/25/b...em&ex=1201410000&en=0b76e9ec7494f1d8&ei=5087

And, yes, Zoe Trading is run by two 10 year Bright Traders.

MGM just gapped down on the fire news, I looked out the window, doesn't look good.

Hope everyone is ok.

Don
 
Yeah, I'm not completely buying this "bs" either. I'm thinking that there were some massive management mistakes that they're covering up....never know for sure.

Reminds me of a few years ago...the owner of one of the "competing" trading firms called me and asked to borrow a few $mil..because "a trader lost xxx dollars and I need to cover it." Well, as it turned out, it was he who lost the money, not "a trader."

Anyway, have a good weekend everyone.


Don
 
One wonders what would have happened if this rouge traders positions had won the same amount , hard to imagine he'd be treated badly for making them billions , even if he did break the rules , which makes quite an incentive right there , maybe a fiftyfifty risk of loseing job , maybe even some prison , or maybe promotion and who knows a million or so in bonus if he made them billions. Hard to say , I don't work for a bank , but it would be easy for his boss to say it was designed that way and take some credit himself , if he won !!
 
You must log in or register to reply here.
Back
Top