Beta
×

Welcome to the Slashdot Beta site -- learn more here. Use the link in the footer or click here to return to the Classic version of Slashdot.

Thank you!

Before you choose to head back to the Classic look of the site, we'd appreciate it if you share your thoughts on the Beta; your feedback is what drives our ongoing development.

Beta is different and we value you taking the time to try it out. Please take a look at the changes we've made in Beta and  learn more about it. Thanks for reading, and for making the site better!

Algo trading rapidly replacing need for humans

DMandPenfold (1108673) writes | about 3 years ago

Businesses 0

DMandPenfold (1108673) writes "Algorithmic trading, also known as high frequency trading (HFT), is rapidly replacing human decision making, according to a government panel which warned that the right regulations need to be introduced to protect stock markets.

Around one third of share trading in the UK is conducted by computers fulfilling commands based on complex algorithms, said the Foresight panel in a working paper published yesterday.

Nevertheless, this proportion is significantly lower than in the US, where three-quarters of equity dealing is computer generated.

The Foresight panel, led by Dame Clara Furse, the former chief executive of the London Stock Exchange, argued that there are both benefits and severe risks to algorithmic trading.

There was "no direct evidence" that the computer trading in itself increased volatility, it said, but in specific circumstances it was possible for a series of events with "undesired interactions and outcomes" to occur and cause massive damage."

Link to Original Source

cancel ×

0 comments

Sorry! There are no comments related to the filter you selected.

Check for New Comments
Slashdot Login

Need an Account?

Forgot your password?

Submission Text Formatting Tips

We support a small subset of HTML, namely these tags:

  • b
  • i
  • p
  • br
  • a
  • ol
  • ul
  • li
  • dl
  • dt
  • dd
  • em
  • strong
  • tt
  • blockquote
  • div
  • quote
  • ecode

"ecode" can be used for code snippets, for example:

<ecode>    while(1) { do_something(); } </ecode>