Comments on: When large-scale complex IT systems break http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traduceri romana daneza http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-53744 Mon, 29 Sep 2014 14:05:35 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-53744 I’ll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)

]]>
By: EllieKim http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-46201 Tue, 12 Mar 2013 15:26:13 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-46201 This and other topics that are relevant for speed traders and institutional investors will be discussed at High-Frequency Trading Leaders Forum 2013 London, next Thursday March 21.

]]>
By: Curmudgeon http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42257 Thu, 02 Aug 2012 19:26:19 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42257 My dissertation research was on intelligent packet routing algorithms for large scale networks. For this experience and for several famous computing failures in recent history, I have become a fan of the human in the loop.

]]>
By: jCarl http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42245 Thu, 02 Aug 2012 16:10:07 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42245 Complex systems are bound to become unstable. Interconnectivity creates conditions for “Dragon Kings”, Black Swans, Tail Events, however yo want to call them. The phenomenon it’s not circumscribed to the IT world. We’ve reach criticallity and complexity levels that breed instability.
http://thechinonomist.blogspot.com/2012/ 04/as-delicate-as-butterfly.html

]]>
By: baroque-quest http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42240 Thu, 02 Aug 2012 15:15:45 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42240 TFF wrote: “I like the idea of making people responsible for their trades”

I’ll go further. I want a financial transactions tax, but that is not enough. If a company crashes the market, I want management to be held personally responsible and not the slap-on-the-wrist nonsense that we see from the SEC. The corporate veil should not just be pierced, but burned away. Crashing the market costs a bundle and I want the assets of the company AND management to be used to make people whole. If that forces management into chapter 7 bankruptcy, too bad, so sad.

]]>
By: baroque-quest http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42238 Thu, 02 Aug 2012 15:03:28 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42238 I wrote: “If systems cannot be thoroughly tested due to the nature of the business”
TFF wrote: “Doesn’t that apply in this case?”

I think we are in agreement. I do not believe that computer trading should exist, period. These clowns have proven that the nature of the industry is indeterminate. It is not remotely possible to test all of the variables, not to mention that variables continue to be added.

But then again, I believe that hedge funds and just about every other company on Wall Street are parasites.

You are correct that my Newegg example was not nearly as complicated as computer trading. A better example would have been Amazon, which has become fairly complex, but things are still sometimes broken. If people cannot buy on Amazon, no big deal, but if the markets crash, big deal.

]]>
By: TFF http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42237 Thu, 02 Aug 2012 14:53:07 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42237 @najdorf, trading once per hour probably doesn’t create any serious issues. But when you are trading dozens of times a MINUTE, the speed of the transactions clearly outpaces any possibility of human control.

I like the idea of making people responsible for their trades (the Flash Crash trades should never have been canceled), but when these issues crop up several times a year I have to question your assertion that “even high-frequency markets can work fine”. Trades that bring down firms add to the systemic instability.

And personally I love volatility. It is very profitable for somebody who trades on fundamentals. Gotta wonder about the chumps who are taking the other side of those trades, though.

]]>
By: najdorf http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42236 Thu, 02 Aug 2012 14:46:09 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42236 I don’t understand at all why people like the financial transaction tax. How is trading once per hour more socially undesirable than trading once per month? Why would we try to regulate markets with such a blunt instrument?

Instead, let’s make people responsible for their trades. If you program your computer such that it sells IBM at 0.01, well, looks like you should have programmed your computer better and are going to have to come up with some money. Secondly, if your behavior causes exchanges to malfunction and be unable to deliver accurate quotes (as in flash crash), let’s target that behavior and ban it. But on a day-to-day basis, even high-frequency markets can work fine as long as we all appreciate that stocks are going to bounce around and we aren’t entitled to have them smoothly compound every day at a 10% annual rate.

]]>
By: TFF http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42235 Thu, 02 Aug 2012 14:35:52 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42235 I do like the idea of a financial transactions tax, though I’m unclear on how that would impact “market makers”? Would the transactions be rewritten to directly match buyers and sellers? Would Official Market Makers be exempt?

Amazing that Knight managed to wipe out 3-4 years of earnings and a third of their equity capital with a single mistake. Somebody won’t be getting a bonus this Christmas! The dollar amount isn’t quite up to the London Whale, but the firm is much smaller.

]]>
By: JustinCormack http://blogs.reuters.com/felix-salmon/2012/08/01/when-large-scale-complex-it-systems-break/comment-page-1/#comment-42234 Thu, 02 Aug 2012 14:29:23 +0000 http://blogs.reuters.com/felix-salmon/?p=16791#comment-42234 Looks like Knight are now going to go bankrupt or be sold. This will impact the number of people wanting to invest in HFT companies quite a bit with such visible downside.

]]>