Please come back to me with your views on the specific risk management activity that needs to be performed within a HFT environment. I am probably looking at Operational (IT) Risk, Market Risk and maybe Regulatory Risk? Any suggestions with some detail if possible. Thanks in advance!

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  • You might consider trying to estimate the productivity of the IT resources over time which would provide the volatility and returns on these resources. The attached paper may be of some interest to you even though it is somewhat academic in tone. We have been using this approach in the private and public sectors for about 20 years. There is a software suite that will generate the subcorporate, any level of generality, ROI estimates automatically once you have deployed it in a company. If you would like to discuss the approach, just give me a ring at 011 831 6567657.

    JAIS03-111.pdf

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