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Intelligence Agents Borrow Wall Street Trading Technology

Posted in: Blog by admin on May 28, 2010

“Wall Street often guards its high-frequency trading strategies as if they were classified matters of national security. Yet the worlds of the quants and the spymasters share more than a penchant for secrecy.

Federal intelligence and defense agencies are increasingly seeking the latest and fastest technology that trading firms use. Technology firms that once served Wall Street or Washington are now supplying both, and some professionals have moved jobs between the two.

The defense and intelligence fields have long relied on computers to help collect and organize data. But a new cross-pollination has flowered with the super-fast automated systems developed by Wall Street. That technology is now being used to search the Internet’s message boards for security threats, comb through bank records for unusual flows of money and gather information used in combat in Afghanistan and Iraq.

Just as military spending on technology has at times led to civilian uses, so the arms race to produce ever-faster and more powerful trading technologies is now serving a broader purpose. “

(Source: Intelligence Agents Borrow Wall Street Trading Technology – MarketWatch)