NEW YORK — Wall Street traders already are threatened by computers that can do their jobs faster and cheaper. Now the humans of finance have something else to worry about: algorithms that make sure they behave.
JPMorgan Chase & Co., which has racked up more than $36 billion of legal bills since the financial crisis, is rolling out a program to identify rogue employees before they go astray, according to Sally Dewar, head of regulatory affairs for Europe, who is overseeing the effort. Dozens of inputs, including whether workers skip compliance classes, violate personal trading rules or breach market-risk limits, will be fed into the software.
“It’s very difficult for a business head to take what could be hundreds of data points and start to draw any themes about a particular desk or trader,” said Dewar, 46.
JPMorgan’s program is being tested in the trading business and will spread to the global investment-banking and asset-management divisions by 2016.
