Over the past few days since the news broke that Union Bank of Switzerland (UBS) had discovered a hole in its books that was measured at $2Bn...now up to $2.3Bn, much has been said about the perils of "Black Box" trading.

Most of the debate has focused on the concept of "delta"This is a measure of how much the price of an option will move for a 1% move in the value of the underlying asset.