'Indispensable' Financial Markets Professionals Are Being Easily Replaced

Terminator

Call me indispensable, call me irreplaceable.....

Wall Street’s credit-derivatives traders, who before the financial crisis commanded $2m of annual pay, are being replaced by machines as banks cut costs and heed new regulations.

UBS AG (UBSN) fired its head of credit-default swaps index trading, David Gallers, last week, with no plan to fill the position, according to two people familiar with the matter. Instead, the bank replaced Gallers with computer algorithms that trade using mathematical models, said the people, who asked not to be identified because moves are private.

UBS joins Barclays Plc (BARC), Credit Suisse Group AG (CSGN) and Goldman Sachs Group Inc. (GS) in using computer programs to trade financial instruments that once generated some of their biggest fees. With regulators preparing rules under the 2010 Dodd-Frank financial reform that will push swaps toward exchange-like systems to improve transparency, credit dealers are going digital as automated trading makes humans too expensive.

'It’s natural to push away from humans and large size to machines and small size', Peter Tchir, the founder of New York-based TF Market Advisors, said in a telephone interview. 'It’s been gaining momentum'.

Hit the link below to access the complete Bloomberg article:

Million-Dollar Traders Replaced With Machines: Credit Markets

London Financial Jobs to Fall to 20-Year Low, Study Finds

Morgan Stanley’s Kelleher Faces Profit Task Solo as Taubman Goes

image: © Ewen Roberts

Bank Workers CharityBank Workers Charity - Supporting bank workers

Register for Financial Markets News Alerts