web summit 2013: open source liar's poker by kirk wylie
DESCRIPTION
A talk by OpenGamma's chairman and co-founder, Kirk Wylie, on open source in the capital markets. Web Summit 2013, Dublin.TRANSCRIPT
@kirkwy
Open Source Liar’s Poker
Getting hedge funds and investment banks to collaborate using Open Source
Kirk WylieChairman & Co-Founder, OpenGamma
Web Summit 2013 | Dublin
@kirkwy
Who Am I
• OpenGamma
• Finance
• Silicon Valley 1998
2004
2009
@kirkwy
What’s OpenGamma
@kirkwy
What’s OpenGamma
@kirkwy
Open Source software
Capital markets
Contradiction?
@kirkwy
Capital Markets?
@kirkwy
Capital Markets?
• Hedge Funds• Investment Banks• Market Infrastructure• Insurance• …everything that blew up in 2008
@kirkwy
What’s this talk doing on the Developers’ stage?
@kirkwy
Morgan Stanley Sales & Trading
Morgan StanleyIT & Ops
@kirkwy
What goes on in there?
@kirkwy
Basic IT Support
Open source all over:
• Linux• Apache/Nginx• PostgreSQL/MySQL• Puppet/Chef
@kirkwy
Back Office
No Open Source
@kirkwy
“Alpha Generation”
• Algorithmic trading
• Human opinions
• 80/20 rule
@kirkwy
Trading Support
• Custom applications• Excel• Risk• Regulations
• Open Source• Java• Spring• NoSQL• OpenGamma
@kirkwy
• Compliance
• Fear of alpha-generation leakage
• The CFO
They can’t collaborate (directly).
@kirkwy
How do they engage?
• Vendor shield
• Closed-door industry-wide committees
• Consultants
• Informally
@kirkwy
Encouraging Collaboration
• Have a vendor
• Don’t chase tech fads
• Communicate informally
@kirkwy
Useful Links
• A+ – http://www.aplusdev.org/• JQuantLib - http://jquantlib.org/• Marketcetera - http://marketcetera.org/• Quantlib - http://quantlib.org/index.shtml• R - http://www.r-project.org/• Tradelink - https://code.google.com/p/tradelink/
@kirkwy
Further Reading
• Bernstein, Peter L. Against the Gods: The Remarkable Story of Risk. New York: Wiley, 1996.
• Das, Satyajit. Extreme Money: Masters of the Universe and the Cult of Risk. New York: Pearson Financial Times/Prentice Hall, 2011.
• Harris, Robert. The Fear Index. London: Hutchinson, 2011.• Lewis, Michael M. Liar’s Poker: Rising Through the
Wreckage on Wall Street. New York: Norton, 1989.• Lewis, Michael M. The Big Short: Inside the Doomsday
Machine. New York: Norton, 2010.• Taleb, Nassim Nicholas. Fooled by Randomness: The Hidden
Role of Chance in Life and in the Markets. New York: Random House, 2001.
@kirkwy
Photo Credits
• http://www.flickr.com/photos/99067767@N00/255301515• http://www.flickr.com/photos/9186550@N08/3792140072• http://www.flickr.com/photos/8718930@N07/3462607995• http://www.flickr.com/photos/doctorow/2711081060• http://www.flickr.com/photos/justsketchy/6602037631• http://www.flickr.com/photos/drregor/4053799099/• http://www.flickr.com/photos/bilal-kamoon/6835060992• http://www.flickr.com/photos/jdhancock/3582171012
@kirkwy
Thank you.
Kirk WylieChairman & Co-Founder, OpenGamma
@kirkwywww.opengamma.com