Sideways: BlueCrest takes the I out of AI

BlueCrest Capital Management’s agreement to pay $170 million to settle charges that it used a trading algorithm to exploit investors is a warning that artificial intelligence (AI) can be a tool to dupe the unwary.

For many years Michael Platt, the former JPMorgan swap trader who founded BlueCrest Capital Management, was a relatively low-key investor who was known in the industry as a hugely profitable dealer but was otherwise able to go about his business unburdened by public attention.

He is now developing an alarming propensity for headline generation, however, even though he converted BlueCrest from a hedge fund to a family office in late 2015 and could in theory have retreated even further from the limelight.

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