EFTA02508368.pdf

From: Vincenzo lozzo Sent: Tuesday, March 10, 2015 1:02 PM To: Joichi Ito Cc: Jeffrey E. Subject: epiphany of the day: the market for algo trading strategies are just like the one for exploits I had this feeling for a while but today I bumped into this: =ttps://www.quantopian.com/ essentially you go there, submit your algo trading strategy and then if =ou beat the returns of the other contestants you get $100k. Now at first I wasn't sure the parallel would hold but then I realized =hat for most non institutional investors (eg: the engineer good at =ignal processing), the trading fees make most of these strategies unprofitable. Hence their only chance of making money of out their work =s either to go work for an institutional investor OR use stuff like =uantopian. In the exploitation world it used to be the case that you would just go =head and use them because you'd never get caught/nobody cared, these =ays you only use them if you're either a criminal or a nation-state =ence why there are similar competitions. The interesting questions (both ways), consequences are: 1) In cyber-sec there's also a market for vulnerabilities (essentially =he building blocks of exploits), can there be a market for the =quivalent in finance? and if so, what would that be? submission of =tatistical correlation between stocks/currencies/etc etc? 2) In security the actors are becoming more and more a commodity, is =hat going to happen in finance as well? 3) In security bugs/exploits are countered by software vendors, whereas =n finance strategies are render useless by the 'efficiency' of the =arket. What are the commonalities/differences? I can think of many.. =?xml version=.0" encoding=TF- 8"?> <IDOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd"> <plist version=.0"> <dict> <key>conversation-idgkey> <integer>122806</integer> <key>date-last-viewed</key> <integer>0</integer> <key>date-received</key> <integer>1425992551</integer> <key>flags</key> <integer>8590195713</integer> <key>gmail-label-ids</key> <array> <integer>6</integer> <integer>2</integer> </array> <key>remote-id</key> <string>488381</string> </diet> </plist> EFTA_R1_01639366 EFTA02508368