Two Sigma, a globally renowned quantitative hedge fund giant, has been allowed to settle in China, taking a Chinese private placement license. The fund, with a management scale of about RMB 411 billion, ranks as a global leader in the scale of quantitative funds, and has a hand in stocks, commodities, foreign exchange and other open-market products; it is one of the industry's few large-scale hedge funds that applies machine learning and big data to systematic trading; the fund's management scale has expanded by more than 10 times over the course of 11 years, and Two Sigma's main fund gets a 3% management fee and a 30% profit commission. management fee and 30% profit commission, while the industry standard is usually 2% and 20%. Undoubtedly, Two Sigma, with its huge scale, algorithmic trading, and savage growth, is compelling.
Two Sigma settled in China, on the one hand, shows that China's financial opening up to the outside world continues to deepen; on the other hand, happy and worrying, just like the two sides of the coin, not only is the "wolf", but also the "big wolf".
In recent years, "open" has been the high-frequency vocabulary of the financial industry. From the capital market opening up, only in September, the launch of the abolition of QFII and RQFII investment quota restrictions, "deep reform 12" and so on. While granting permission for Two Sigma to settle in China, fully reflecting China's capital market openness and the courage to move forward.
Flip to the other side of the coin. Quantitative trading in China is still in a stage of rapid development, especially the algorithmic complex quantitative trading. two Sigma settled in China, which puts a higher demand on the financial regulatory experience. Strengthening the regulatory wrist, solve the regulatory process of the division of responsibilities, responsibility implementation, regulatory coordination and many other aspects of the regulatory process, covering a variety of regulatory gaps, also seems particularly urgent.
From the development of China's capital market, after the launch of stock index futures, there is a real sense of quantitative trading, but China's quantitative trading development started late, the development of fast, the development process is not smooth sailing. August 16, 2013, Everbright Securities arbitrage strategy system problems, quantitative trading products instantly appeared to 23.4 billion yuan subscription of the ETF180 constituent stocks of "oolong finger". "Oolong finger" transaction. The lesson is painful.
For Chinese quantitative trading companies that are still in the exploration and development period of quantitative trading, Two Sigma's settlement in China is a real "big wolf". In the face of the behemoth, Chinese quantitative traders how to avoid risk, how to improve the risk monitoring and early warning and early intervention mechanism, rapid development and growth, and dare to wrestle with the "predators", and even have "Mu Yu Yi, wind and dance summer, singing and return" of the dashing, which is what Chinese investors would like to see. This is what Chinese investors would like to see.