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I don't know what reality you operate in, but hedge funds don't provide anywhere close to those types of guarantees. Exchanges do indeed go down, and when they

I don't know what reality you operate in, but hedge funds don't provide anywhere close to those types of guarantees. Exchanges do indeed go down, and when they do they shrug their shoulders and say "woops". Source: I work for a hedge fund.

chollida1 9y ago
> I don't know what reality you operate in, but hedge funds don't provide anywhere close to those types of guarantees. Strange comment, I think I've confused you. All this was about exchanges and what hedge funds expect from them, not guarantees about what hedge funds provide. And you are right, exchanges do go down, and its news when they do because they are so good at what they do that its very rare. > I don't know what reality you operate in I operate in the US Cash Equities and options markets. What I've asked for is par for the course there, in that no one mentions it because its the very lowest base, must have requirements.:) When was the last time you heard of Goldman Sachs begin hacked and all the hedge funds that use them as a prime loosing all their money?
- brndnmtthws 9y ago
  Hedge funds do a better job of hiding their failures than something which operates on a public ledger, because everything is done behind closed doors. Furthermore, hedge funds are very good at finding creative ways to lose money, and they have great liberty in doing so. The reporting requirements for hedge funds are relatively lax compared to, say, an index fund.
  - chollida1 9y ago
    I agree with everything you've just said. And yet, it has absolutely nothing to do with what we are talking about:) Which is what exchanges need to do to get institutional investors;)
    - deleted 9y ago
      [deleted]
- babuskov 9y ago
  > When was the last time you heard of Goldman Sachs begin hacked Goldman Sachs is not an exchange. > it has absolutely nothing to do with what we are talking about:) Exactly. You are confusing others by giving GS as an example, while we're talking about exchanges.
  - chollida1 9y ago
    Good question, I can see why you are confused. Coinbase right now acts in two ways. 1) as an exchange who allows you to trade on it. 2) as a prime broker who holds your coins. In this capacity they are just like Goldman Sachs who can function as a prime broker for hedge funds. (a prime broker is like a bank who holds your securities for you). So in this case Goldman is relevant as they do the same function that coinbase does with respect to holding securities on behalf of a client. Does that help clear up the confusion?
    - babuskov 9y ago
      > Does that help clear up the confusion? No, it adds. > So in this case Goldman is relevant as they do the same function that coinbase does with respect to holding securities on behalf of a client. Then why did you write in your other message that Goldman Sachs has got nothing to do with this discussion? It seems to me that you are confused. Please decide whether you think the Goldman Sachs is relevant or not before proceeding.
      - dmoy 9y ago
        Which other message? Now I'm confused. I saw gp say that a hedge fund failing or something has nothing to do with the discussion, but not that GS has nothing to do with the discussion.
- nostrademons 9y ago
  There's a pretty wide variety in standards between U.S. financial institutions. I used to work for a startup that wrote software for hedge funds (this was back in 05-07). The guys from Fidelity would come in and they'd have a huge checklist of IT best practices that you need to adhere to, everything from security to backups to SLAs with financial penalties for violating them. The guys from Magnetar would come in and be like "Sure, we'll try anything that gives us an advantage in the markets." I suspect that your idea of what's "par for the course" and the "very lowest base" is pretty far from what's actually the lowest base in the financial industry, and similarly I suspect that brndnmtthws's view of what's typical for a hedge fund isn't typical for all hedge funds.
notyourday 9y ago
> Exchanges do indeed go down, and when they do they shrug their shoulders and say "woops". Yeah, no. Tape is reversed all the time in event of oops. Probably the most famous one was when Knight [NITE] had "oops" and started making markets in itself, tanked the stock, had millions of dollars executed against it and got NASDAQ to REVERSE completed transactions, including the ones painted via SOES.

chollida1 9y ago

> I don't know what reality you operate in, but hedge funds don't provide anywhere close to those types of guarantees. Strange comment, I think I've confused you. All this was about exchanges and what hedge funds expect from them, not guarantees about what hedge funds provide. And you are right, exchanges do go down, and its news when they do because they are so good at what they do that its very rare. > I don't know what reality you operate in I operate in the US Cash Equities and options markets. What I've asked for is par for the course there, in that no one mentions it because its the very lowest base, must have requirements.:) When was the last time you heard of Goldman Sachs begin hacked and all the hedge funds that use them as a prime loosing all their money?

brndnmtthws 9y ago
Hedge funds do a better job of hiding their failures than something which operates on a public ledger, because everything is done behind closed doors. Furthermore, hedge funds are very good at finding creative ways to lose money, and they have great liberty in doing so. The reporting requirements for hedge funds are relatively lax compared to, say, an index fund.
- chollida1 9y ago
  I agree with everything you've just said. And yet, it has absolutely nothing to do with what we are talking about:) Which is what exchanges need to do to get institutional investors;)
  - deleted 9y ago
    [deleted]
babuskov 9y ago
> When was the last time you heard of Goldman Sachs begin hacked Goldman Sachs is not an exchange. > it has absolutely nothing to do with what we are talking about:) Exactly. You are confusing others by giving GS as an example, while we're talking about exchanges.
- chollida1 9y ago
  Good question, I can see why you are confused. Coinbase right now acts in two ways. 1) as an exchange who allows you to trade on it. 2) as a prime broker who holds your coins. In this capacity they are just like Goldman Sachs who can function as a prime broker for hedge funds. (a prime broker is like a bank who holds your securities for you). So in this case Goldman is relevant as they do the same function that coinbase does with respect to holding securities on behalf of a client. Does that help clear up the confusion?
  - babuskov 9y ago
    > Does that help clear up the confusion? No, it adds. > So in this case Goldman is relevant as they do the same function that coinbase does with respect to holding securities on behalf of a client. Then why did you write in your other message that Goldman Sachs has got nothing to do with this discussion? It seems to me that you are confused. Please decide whether you think the Goldman Sachs is relevant or not before proceeding.
    - dmoy 9y ago
      Which other message? Now I'm confused. I saw gp say that a hedge fund failing or something has nothing to do with the discussion, but not that GS has nothing to do with the discussion.
nostrademons 9y ago
There's a pretty wide variety in standards between U.S. financial institutions. I used to work for a startup that wrote software for hedge funds (this was back in 05-07). The guys from Fidelity would come in and they'd have a huge checklist of IT best practices that you need to adhere to, everything from security to backups to SLAs with financial penalties for violating them. The guys from Magnetar would come in and be like "Sure, we'll try anything that gives us an advantage in the markets." I suspect that your idea of what's "par for the course" and the "very lowest base" is pretty far from what's actually the lowest base in the financial industry, and similarly I suspect that brndnmtthws's view of what's typical for a hedge fund isn't typical for all hedge funds.

notyourday 9y ago

> Exchanges do indeed go down, and when they do they shrug their shoulders and say "woops". Yeah, no. Tape is reversed all the time in event of oops. Probably the most famous one was when Knight [NITE] had "oops" and started making markets in itself, tanked the stock, had millions of dollars executed against it and got NASDAQ to REVERSE completed transactions, including the ones painted via SOES.