Continuing the discussion from
AMA - ask Robin Hood anything:
I am extremely interested in learning about economic and financial topics that I have a somewhat fuzzy grasp upon due to very glaring blind spots deposited by my education in cultural theory and computer programming. The blacks holes in knowledge are mostly material. I don’t, for instance, at all understand the exact technological, financial, legal, social and institutional mechanisms that a Finnish coop negotiates through to executes trades on the NYSE–though I can grasp the idea “the parasite”, “trading”, and “stocks” conceptually. Other questions: how can the algorithm consistently identify traders when NYSE, by law, anonymizes all transactions? I would also be extremely interested to learn about the mundane elements of the whole process. As I understand it, “the parasite” is more or less a recommendation engine, presenting preferences to an actual human who makes selections. Well, who is that human? What time and through what channels do those decisions get made? I believe a material, mundane, granular and infrastructural understanding of finance and economic would demystify the topic and ground itself in the pluripotency of objects that could open space for multiple types of intervention beyond, say, the blockchain. Perhaps we could even pool resources for comprehensive economics and financial literacy as it relates to very material, day-to-day finances of Robin Hood and the markets at large?
This is a chunky topic… so I’ve started this thread so we can chip away at it.
Here is a useful doc:
2.Investments in Cooperative shares. When buying shares, the member buys
equity in the Cooperative. The Cooperative then invests that equity in
currency and stock exchange markets. These assets under management may
go up or down in value. Past performance of the portfolio does not
guarantee future performance.
In reality, this means at the end of each month we bundle all member deposits and then make purchases through
our broker for the US stock exchange.
“As I understand it, “the parasite” is more or less a recommendation engine, presenting preferences to an actual human who makes selections. Well, who is that human? What time and through what channels do those decisions get made?”
The humans who make this decision is Sakari (the algorithm designer) which is overseen by the Board Members. Currently:
Akseli Virtanen (Chairman) (
@Akseli) , Tiziana Terranova ( @tterra142 ) , Tere Vadén ( @Tere ) and Liisa Välikangas ( @liisa_valikangas).
This is done through monthly meetings with those who have access to the IB account.
The board members are selected at the RHC AGM.
Let me know if you need me to tease out more info!