Goldman Sachs has replaced almost 600 of its traders with machine trading systems supported by 200 computer engineers, as automated equity trading accelerates in the financial sector.
Almost 45% of equity trading, which consists of buying and selling stocks for banking customers, is done electronically, according to UK-based analyst firm Coalition.
In addition to equity trading, automated systems are beginning to replace humans in other roles, such as currency trading and even investment banking.
The average annual salary, including bonuses, for sales, trading, and research staff at the 12-largest investment banks worldwide is $500,000, according to Coalition.
The money saved by relying on computerized systems for financial services in addition to lower-level support roles will likely benefit business unit directors who otherwise must pay lucrative wages to highly compensated staffers.