How Barclays Conquered The World.

Traders, November, 2001 by Chapman, Peter

One of the first things you notice about Barclays Global Investors (BGI) is the magic markers. Brightly colored four-packs seem to be affixed to every glass wall and whiteboard at the renowned quant shop. They are a testament to the penchant of executives for scribbling out complex financial formulas when strategizing.

This devotion to mathematics doesn't stop at the trading room door. Buyside shops everywhere are charged with obtaining best execution, but at BGI transaction costs are forecast even before the traders arrive at work. And, at the end of the day, traders are judged by how close their executions matched their benchmarks.

Such strict controls are necessary when you're managing index funds. With about $300 billion in equity assets under...

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