Richard Gardner, CEO of Modulus Financial Engineering, offers his advice on how to avoid, prevent and mitigate the risks associated with high-volume automated software— and the employees who wrote the code.
CIO — Last month, Knight Capital Group lost $440 million in half an hour due to a bad automated financial trade. The loss disrupted the market, hurt consumer confidence and, according to Business Insider, led the Security and Exchange Commission (SEC) to consider new regulations for software that controls financial transactions.
Meanwhile, most of the folks in the know aren’t talking.
Enter Richard Gardner, CEO of Modulus Financial Engineering. Based in Scottsdale, Ariz., Modulus has offered financial products and consulting to the industry since 1997. Today the company has 55 employees and a customer list that includes Barclays, Bank of America, Chase and E*Trade.
Company founder Gardner began trading in financial systems at 15, using his family’s account. At 23 he wrote his first software system to assist with trade; it analyzed commodities prices based on crop and weather data.