JP Morgan is using machine learning to automate the hedging of some equity options, a move that one quant calls a “game-changer”.
The bank started using machine learning to hedge a portion of its index vanilla flow book last year. Since then, it has been able to hedge its exposures faster, and quote higher volumes as a result.
“The real advantage is we are able to increase volumes quoted – because we are faster,” says Hans Buehler, global head of equities analytics, automation and
The founder and CEO of Imperative Execution looks at how trade execution is changing and what that means for the buy side.Subscribe to Weekly Wrap emails
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