Chapter 371 The New Generation of Aladdin System (5049)
There are only two levels left to the ninth level where one can cast fifth-ring spells!
I have finally been promoted to an intermediate wizard. There is no bottleneck at level eight and nine. I just need to work hard. With the daily Buffy training method and the faith transformation of the God of Desire model, I should be able to break through to level nine in less than a year.
Fang Yu in the etheric world touched his boundless messenger and clenched his fists.
Chen Wanyu's baby tooth is in the Boundless Messenger.
Fang Yu looked at the shadows around him and saw Jiang Nanzhen looking around with a suspicious look on his face.
As an angel of desire, Jiang Nanzhen is immune to enchantment spells below the fifth ring. "Ordinary" has no effect on her. She can always see Fang Yu standing in the back row of the conference room.
In addition, as a devout believer of Fang Yu, as long as she is not too far away from Fang Yu, she can have some instinctive sense of Fang Yu.
Just now, she suddenly saw Fang Yu suddenly disappear!
Not only did the person disappear, but he could not sense Fang Yu's presence at all.
Suddenly, Jiang Nanzhen felt a pulling sensation in his body, and then his body became lighter and he entered a state of weightlessness. Everything in the surrounding space turned into translucent shadows, and the space seemed to be filled with thick gray fog, and he could not see clearly a few meters away.
None of the enthusiastic subscribers around noticed Jiang Nanzhen's disappearance. Only Robert Capito, who had been secretly paying attention to Jiang Nanzhen, looked a little confused, but then returned to normal.
As for the other three guys, Si Lingsi, they were so excited that they were registering for this group of fanatical institutional investors, and they were completely unaware of Jiang Nanzhen's disappearance.
Who would have thought that the three of us would become so famous on Wall Street!
——
Where is this?
Although Jiang Nanzhen became an angel of desire with divine powers and knew how to use divine power, she had no arcane knowledge or common sense, and had never heard of the existence of the etheric world.
Through the thick fog, you can vaguely see the shadows of things two or three meters away, but you can't see anything farther away.
This is also a characteristic of the etheric world. The stronger the mental power of the creature that enters, the farther it can see.
With Jiang Nanzhen's current mental strength level of less than 10, he can only see two or three meters, and this is still influenced by the bonus of celestial beings.
The Etheric Realm is different from the Astral Realm. Creatures from the real world can enter here, but if no one provides them with the magic power to maintain their existence in the Etheric Realm, they will be kicked out by the Etheric Realm.
"I'll give you half a year to join the BlackRock Executive Committee." Fang Yu suddenly appeared beside Jiang Nanzhen, lifting her small and fair chin.
Jiang Nanzhen was delighted to see Fang Yu appear. Just as she was about to ask Fang Yu where this was, the powerful aura coming from Fang Yu made her tremble uncontrollably.
Ah~ The Lord is truly becoming more and more powerful~
Jiang Nanzhen's breathing became heavy, and her face pressed against Fang Yu's chest.
"Lord, your command is the meaning of my existence."
Fang Yu pinched it with satisfaction, and was about to send Jiang Nanzhen back to the real world, when he suddenly found that they were both suspended in the ether world.
I haven't unlocked the zero-gravity scene yet, have I? I originally thought I'd save that experience for manned spaceflight, but I didn't expect it to be possible now.
Would you like to try it?
In the real world, Robert Capito is three meters away, which is a bit exciting.
Fang Yu touched his chin and thought about it.
Ten minutes later.
Robert Capito, who was still in the Schubert conference room, didn't know why, but he felt so upset.
——
"Mr. President, this 404 Fund is just a newly established small company. I don't think they are truly worth acquiring right now."
"Besides, this is too risky. The connection between this company and Yuzu Technology is too close. No one can guarantee..." BlackRock's Chief Operating Officer and Global Head of Solutions Goldstein frowned and shook his head slightly.
Goldstein didn't address Robert Capito by name because his name is also Robert.
Robert Goldstein.
He was one of the few people within the BlackRock Executive Committee who was most wary of Youzi Technology. It was he who went to Xingang to negotiate with Zhou Shuzi.
As a result, within a few days, the surveillance incident in the Xingang office broke out, making him extremely embarrassed.
Although his behavior at the time was decent, it was obvious that he would not hear any good things after it was posted on social media.
When Robert Capito proposed his intention to acquire 404 at the Executive Committee meeting, Robert Goldstein was one of the most resolute opponents.
He has no conflicts with Robert Capito. On the contrary, just as Robert Capito is a staunch supporter of Larry Fink, he is also a staunch supporter of Robert Capito. The relationship between the two is comparable to that of teacher and student.
It was for this reason that he could speak out against Robert Capito's opinions, and he did not want his teacher to make an irreparable mistake due to a momentary confusion.
Robert Capito had a calm demeanor, and one couldn't tell he had the ambition to be Emperor Wen of Wei. "Rob, I'm not saying I'm going to buy them now, but they're certainly worth paying attention to, aren't they?"
"They are still mainly doing short-term arbitrage. My view is that if the three newly launched funds achieve the returns they advertised, we need to make defensive acquisitions."
"This suggestion isn't based on their business situation, but rather on the advantages of their Woking system in identifying risk factors. It can greatly enhance Aladdin's ability to identify risk factors, thus addressing our biggest shortcoming."
"Of course, whether the Woking system can make up for Aladdin's shortcomings in risk factor identification requires more professional research and analysis."
"Ben, from your professional perspective, after these past two days of studying the Woking system, do you have any opinions?"
Robert Capito turned and asked Bennett Goleb, who had a similar hairstyle and age to him.
Bennett Goleb is the chief risk officer of BlackRock. Like Larry Fink and Robert Capito, he was originally from First Boston Corporation. He is one of the eight founders of BlackRock and a professional specializing in financial risk control. He holds a certain status not only in the financial world but also in academia.
In order to talk to Jiang Nanzhen more and ask for her contact information, Robert Capito made an excuse to ask Si Lingsi for a temporary visitor account for the Woking system. Unexpectedly, the other party actually gave it to him in the end.
Three days of temporary visitor access to the Woking system.
Robert Capito went up to experience it that day. With his subconscious mind already having a tendency, he only needed a brief experience to judge that the Woking system could basically beat Aladdin in the field of risk factor identification.
Even MSCI's Barra.
He then handed the three-day temporary visitor account to Bennett Goleb.
The next day, he asked Jiang Nanzhen out for dinner, using the excuse that he wanted to learn more about the Woking system and Si Ling Si.
Of course, in order to cover up his tracks, he also specially invited the three guys from Si Ling Si.
He didn't remember a word the three of them said during the whole meal, and his mind was filled with the image of Jiang Nanzhen.
Bennett Goleb turned on his computer and wrinkled his nose out of habit: "Everyone, I must remind you of something. AI is here."
"Yes, we've discussed this topic countless times over the past two months. But this time, I can tell you with absolute certainty that when factor models and neural networks are combined, the effect produced is not simply one plus one equals two."
"It's multiplication! Even exponential improvement!"
Two executive committee members were grumbling, "Doesn't one multiplied by one still equal one? Even if it's an exponent, one to the power of ten thousand is still one."
But obviously, everyone understood what Bennett-Golleb meant, and no one, ETC, was quick to argue.
"Aladdin's current model is limited in its understanding of the nonlinear interactions between factors, while the Woking system can dynamically adjust weights. Do you understand what this means?"
"This not only means an improvement in the accuracy of risk factor identification, but also means that even in the face of a black swan event, the Woking system can automatically respond within 0.001 seconds, minimizing the losses caused by the black swan event!"
"Since it's just a guest account, I can't do any real trading. But judging from the results of simulated trading, the Woking system has a very high accuracy rate in identifying risk factors. Compared to Aladdin's risk management module, it's a product of two completely different eras."
"We have to admit that a very tough opponent has emerged in the field of risk management."
"Fortunately, this company doesn't seem to be aware of this and is currently only applying this large model to simple short-term arbitrage."
"In fact, this model can play a greater role in the management of our iShares ETF passive strategy, the trading of financial derivatives, and even in the fixed income market, liquidity tracking, cross-market arbitrage, and foreign exchange management."
“What a waste!”
"This is a summary of the communication between Daniel and I. You can take a look at it."
Bennett Goleb projected the computer screen onto a 100-inch screen so that everyone in the Executive Committee's dedicated meeting room could see it clearly.
I saw Bennett-Gollob make a comparison chart of Aladdin, Barra, Axioma and Woking systems in terms of risk factor identification and automated trading.
It looks like it is compared with the models on Autohome.
It can be seen that the Woking system is almost overwhelming in these two areas!
The Daniel that Bennett Goleb mentioned is Daniel Gurvich, the head of operations and maintenance of Aladdin Systems. Daniel Gurvich's direct report is Chief Operating Officer Robert Goldstein.
Robert Goldstein's frown deepened.
Bennett Goleb's PPT is too shocking. Compared with the Woking system, the Aladdin system is like a medieval heavy cavalry in terms of risk management module and automatic trading, while the Woking system is like a self-propelled artillery.
A generation gap has completely formed.
In this case, if the Aladdin system does not make corresponding adjustments and changes, or the Woking system is taken over by other asset management companies, BlackRock will have no choice but to dissolve.
Robert Capito calmly said, "You've already seen that we're completely behind technologically. If the only technological gap between us and Barra was just technology, we could defeat them with scale and operational model."
"But now, AI has arrived. You can all clearly see that the Woking system has an overwhelming advantage in risk management modules and automated trading systems. 404 Fund holds all of the Woking system's intellectual property rights. This is why I proposed acquiring the 404 Fund."
"The new generation of Aladdin system based on the AI big model, everyone, don't you think this is exciting?"
"I've had people calculate that if we replace the current version with the AI-based Aladdin system, we can save at least 70% of our labor costs, most of the technical stack employees can be laid off, and fixed asset investment will also be lower."
Hearing Robert Capito's words, almost all the executive-level executives were shocked.
An Aladdin system based entirely on AI?
Doesn't that mean using the Woking system as the kernel to replace the current Aladdin system?!
"Derek, is it possible for us to develop this system ourselves? I remember you said at the executive committee meeting at the beginning of the month that we are also exploring this aspect and have achieved certain results. How long will it take before it can be put into practical use? How much will it cost? Can the effect be comparable to this Woking system?" Robert Goldstein frowned and asked Derek Stein, who was sitting in the corner of the conference room.
Derek Stein is BlackRock's global head of business operations and technology, and is also a member of the executive committee. He also oversees part of the R&D team of the Aladdin system.
In fact, after the Orange model was open-sourced, Derickstein had already asked the R&D team to work on the combination of AI and factor models. They stumbled and came up with a large neural network model, but the convergence was very poor. Currently, even simple arbitrage will result in calculation errors, not to mention practicality.
Derek Stan looked embarrassed: "Rob, this..."
"Well, we may need more research and exploration. Oh, and we also need to recruit people. You know, deep learning talent is very expensive right now, and it's difficult to recruit suitable talents with our salary budget..."
Well, when I heard this, I knew there was no hope at all.
BlackRock's basic salary level is indeed not high, and it is a well-known stingy company on Wall Street. In the past two years, it has mainly relied on this reputation to attract outstanding talents who want to accumulate qualifications.
BlackRock can only pay its financial coder-level employees around 150,000 Malaysian dollars.
But what is the price of deep learning talents now?
Basically, the starting price offered by other companies is more than double that of BlackRock.
But it’s not that there are no people in the company who understand deep learning and big data. There are still quite a few people in several large technical groups who understand these things.
These people made a rough assessment and concluded that if they only relied on self-research, even with huge investments, they would not be able to achieve any results within three to five years.
After all, BlackRock is essentially a greedy financial company. Even if it has more programmers, the things in its genes cannot be changed.
For example, in addition to having less technical talent than major Internet companies, BlackRock's technology stack also has a low ability to promote new technologies. Often, a technology has been used in the market for many years before BlackRock begins to apply it in internal development.
The same is true for development tools. Being 2-3 years behind the big manufacturers is considered good, and being 4-5 years behind is normal.
Until now, Aladdin has not had an app that can view key data on mobile phones.
It is conceivable that if we only rely on self-research, let alone the new Aladdin system based on the big model, even
Cooperating with Google's Deepmind or OpenAi, which has just modified the Orange Model and specializes in the crisis of intelligent machines, is also an option. However, this kind of cooperation between large cross-disciplinary companies has more problems, and efficiency and effectiveness cannot be guaranteed.
Goldstein pursed his lips. "I still believe we should be cautious. We shouldn't make any rash decisions until we're sure the Woking system is secure."
Robert Capito glanced at Goldstein and said lightly, "Of course we need to be cautious. But, Rob, don't forget, we grew up in crises. Without risk, there would be no profit. You're concerned about technical risks, which we can completely avoid through stronger pre-acquisition technical reviews."
Then, Robert Capito turned his head to the left and looked at Larry Fink at the end of the conference table. "Larry, I think we should continue to monitor the situation of 404 and prepare an acquisition plan in advance."
After listening to Robert Capito's words, Larry Fink, who had been silent but deep in thought, said: "You know, I have never resisted the advancement of technology. I prefer to buy it rather than develop it ourselves."
Larry Fink was right. To maintain Aladdin's dominance, BlackRock spends hundreds of millions, even billions, of dollars annually acquiring software companies with advantages in specific areas. Some of these acquisitions are defensive, while many more are integrated into the Aladdin system and become part of it.
Among them, there are also several Dazhou companies, but because they are not 2C companies targeting the general public, the public does not know about them.
"But I'm more concerned about another issue now: what impact will using AI to build the core of the next-generation Aladdin system have on our ESG strategy? Will it hinder ESG promotion? This is a question we must consider."
Robert Capito smiled after hearing Larry Fink's words. "Larry, this was my biggest concern. I've consulted many professionals, and they've found that AI can be trained through supervised learning to meet specific user needs. So, we can, just like we do now, set an ESG filter at the trading terminal level to only track assets with an ESG rating of BB or higher."
"Also," Robert Capito said calmly, his heart pounding. "I just learned that one of the developers of the Woking system, Jane Jiang, was recruited by John Doe. I've learned that she's a staunch supporter of ESG, and I'm planning to transfer her from the alternative investment department to within the group."
Larry Fink had great trust in Robert Capito. After listening to Robert Capito's words, he nodded and said, "You are very meticulous. Let's do as you say."
Goldstein's lips moved as if he wanted to say something, but under Robert Capito's gaze, he said nothing.
Time really flies.
(End of this chapter)
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