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

UBS AG, Switzerland’s biggest bank, 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.”

Can someone explain exactly why derivatives traders were getting paid $2MM/annually before their techniques were automated?

Business: Washington Post Business Page, Business News

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    Is it possible that — like medicine before it — expert-systems analysis reduced an arcane knowledge base (“I don’t know...
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  18. hookersorcake said: I think its awful that they’re replacing assholes with robots. Being fucked over with out the personal touch is such terrifying boredom.
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