Market risk is not physics. It just acts like it. Until it doesn’t.
One of the early quants at former Wall Street heavyweight Salomon Brothers, Dr Lance Smith has a rich mathematical background, but believes there is much more to risk management than the mathematical models.
“A tsunami strikes Japan, or a Brexit strikes the UK,” says Smith. “Things happen that are not in the tea leaves of historical data. On the other hand, physics is repeatable. Given the same starting point and conditions, you can predict the outcome with well-defined and known probabilities.”
“Not so with the markets,” he adds. “You don’t get do overs. Traders make bets that are tilted in their favor, and the key is to make sure that you can survive the negative surprises and reap the benefits of making such bets.”
NEW YORK – January 29, 2015 – Imagine Software, a leading provider of real-time portfolio and risk management solutions for the global financial services industry, today announced that it has partnered with XTF Inc. to provide clients with advanced data for exchange traded funds and the ability to conduct integrated analytics on portfolio positions and derivatives.
Institutional Investor Spotlights Imagine Co-Founder Steven Harrison in 2013 Trading Technology 40 List
NEW YORK, February 7, 2013 - Imagine Software, a leading provider of real-time portfolio and risk management solutions worldwide, announced today that Steven Harrison, President and COO, was selected for inclusion in the Institutional Investor Trading Technology 40 list