math learning curve in FX business

In FX business (not saying “system”) , most of the initial learning obstacles are math-related. A large part of it is due to the need to forecast fx rates. “Hedge” and “risk” are all about uncertainty in FX rate movements.

To avoid confusion, in this blog we don’t really talk about FX Futures contracts at all. “Future” doesn’t mean “Futures contract”.

If you as an enterprise just needs to convert currency at the spot rate, it’s straightforward. But any solution to future-proof your corporate FX needs tends to involve derivatives tied to future FX rates. Incidentally, every derivative (forwards, options, swaps ..) has an expiration date.

Whenever you consider future FX rates, the 2 countries’ interest rates come into play. I feel the Interest-Rate-Parity formula is quite basic and unavoidable, just like PCP and price/yield conversion. Other obstacles include
– Cross rate calc
– triangular arbitrage

triggers that print debug msg

(“debug msg” to show what’s going on. )

Looks like a jdbc insert might fail due to the debug msg. EVEN if u can keep your debug msg and keep jdbc happy, there would still be a lingering doubt — debug msg is not perfectly compatible with java …. In view of the cost of production support, to play safe in a large, fast-paced environment,

Suggestion: enable debug msg during trigger development only, unless you are very sure how to make the debug msg compatible.

This affects sybase, and may affect mssql.

Perl — defensible turf — why@@

Reason: in every team including GS, no one has a deeper or more complete experience than mine.

reason: i explored way beyond everyday language features. if i walk into a perl shop, most of the features used i already know.

Lesson: “3 years on a … job” seems to prove qualification for similar jobs, but nonono, because those x years could be very limited.

Look at C. i used it in Chartered Semi but almost no pointers, no memory management, no threading, no system programming… For java i actually used a lot of things, but there are many more experienced guys.

A lot of 5-year java developers are completely unprepared against threading challenges.

Which area can I target as my next?

* threading?
* MOM?
* SQL + relational design?

some pro^con of triggers

+ if 2 programs need to CUD but can’t share the DAO.
Example: 2 java programs running on 2 machines. U may have to copy the jar to share code.
Example: sometimes u may even use command line to CUD

+ to achieve the same data quality level, those same SQL must be run anyway, in trigger or in app


– perf. extra load on the bottleneck — DB server
– migrating to another DB vendor

assignment overloading && other op overloading

Notice many overloaded operators return a value to be used as RHS of assignment. It’s good to become thoroughly familiar with this interaction — [ op= and overloaded operators ]

When you assign returned value of any (pbclone/pbref) function, you get op= . op= simply reads the RHS, and doesn’t care if the func is pbclone or pbref.

financial jargon: financing ie capital formation

“in response to a $-seeker, finding $-providers and getting the $ to the receiver.” The return side of the transaction is perhaps(?) supported by other teams

financing means
– getting $ for party A
– getting $ from party B
(Party A is always a client to me. Party B usually is a client too.)

Financing is always(?) a kind of broker job between $-seekers and $–providers. Our firm (the financing team) earns fees from them.

Financing usually involves
– debt, lending.
– equity

“financing a position” means? I think it means finding fund so Party A can take a particular position.

A “financing solution” is a clever deal.

“financing services”

“financing professionals”. Often a person working in the financing business focuses on that business.