How to recognize opportunities: Heterarchical search in a Wall Street trading room

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K. Knorr Cetina et A. Preda (ed.), The sociology of financial markets, Oxford University Press, October 2004
http://hdl.handle.net/10230/1067
To cite or link this document: http://hdl.handle.net/10230/1067
dc.contributor.author Beunza Ibáñez, Daniel
dc.contributor.author Stark, David
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2004-01-01
dc.identifier.citation K. Knorr Cetina et A. Preda (ed.), The sociology of financial markets, Oxford University Press, October 2004
dc.identifier.uri http://hdl.handle.net/10230/1067
dc.description.abstract Our task in this paper is to analyze the organization of trading in the era of quantitative finance. To do so, we conduct an ethnography of arbitrage, the trading strategy that best exemplifies finance in the wake of the quantitative revolution. In contrast to value and momentum investing, we argue, arbitrage involves an art of association - the construction of equivalence (comparability) of properties across different assets. In place of essential or relationa l characteristics, the peculiar valuation that takes place in arbitrage is based on an operation that makes something the measure of something else - associating securities to each other. The process of recognizing opportunities and the practices of making novel associations are shaped by the specific socio-spatial and socio-technical configurations of the trading room. Calculation is distributed across persons and instruments as the trading room organizes interaction among diverse principles of valuation.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 735
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title How to recognize opportunities: Heterarchical search in a Wall Street trading room
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:10Z
dc.subject.keyword Management and Organization Studies
dc.subject.keyword arbitrage
dc.subject.keyword trading
dc.subject.keyword heterarchy
dc.rights.accessRights info:eu-repo/semantics/openAccess


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