Fixations are a symptom of Asperger’s, along with social problems, elevated stress, and a propensity for numbers over words. The kids in Winchester bullied him for it. Hayes remained a peripheral figure in college, at the University of Nottingham. While his fellow students took their summer holidays, he paid for school by cleaning pots and lugging kitchen supplies for £2.70 an hour. ... Seeking better money, Hayes won an internship at UBS in London. After graduating, in 2001, he joined Royal Bank of Scotland as a trainee on the interest rate derivatives desk. For 20 minutes a day, as a reward for making the tea and collecting dry cleaning, he was allowed to ask the traders anything he wanted. It was an epiphany. ... On the rare occasions he joined other bankers on their nights out, he stuck to hot chocolate. They called him “Tommy Chocolate” and blurted out Rain Man quotes like “Qantas never crashed” as Hayes walked the trading floor. He was bad at banter, given to taking quips and digs at face value. The superhero duvet was a particular point of derision. The bedding was perfectly adequate, Hayes thought; he didn’t see the point in buying another one. ... Not everyone in finance was a jerk. Hayes made a few friends, and he found that his machine-gun approach to messaging and trading made him a favorite among brokers, who didn’t care where a trader had gone to school as long as he brought them deals. ... His M.O. was to trade constantly, picking up snippets of information, racking up commissions as a market maker, and building a persona as a high-volume, high-stakes risk-taker. ... Libor was a component in securities ranging from U.S. student loans and credit cards to Kazakh gas futures, but it was determined each day by just a handful of distracted, guesstimating individuals.
Volatility was once merely a mathematical measure for investors of how sharply markets moved. Today, volatility is a complex multibillion-dollar market in its own right, played by everyone from sophisticated hedge funds to gum-chewing day traders. ... But Vix is also one of the finance industry’s biggest enigmas. This should be a moment of potential peril for markets, with US interest rates rising, heightened geopolitical tension and a populist outsider in the White House. Yet Vix has remained largely tranquil. ... the evaporation of volatility also reflects profound structural changes that have taken place since the financial crisis, such as the primacy of central banks and the big shift into exchange traded funds. ... the index’s inventor is unhappy about, given structural flaws that make these products ill-suited for retail investors. Constantly buying new futures is costly, and Vix futures are typically in “contango”, when longer-term contracts are more expensive than near-term ones. In practice this means that Vix ETPs are most of the time slowly bleeding to death.