Written DMandPenfold Algorithmic trading, also known as high frequency trading (HFT), quickly replacing human decision making, according to a panel of the British government, which warned that the law should be introduced regulations to protect the stock market. Approximately one third of share transactions in the UK is carried out by computers fill orders based on complex algorithms, said the panel looking into a discussion paper released yesterday. However, this proportion is significantly lower than that of the United States, where three-quarters of the equity deal is computer generated. Foresight panel, headed by Dame Clara Furse, the former CEO of the London Stock Exchange, argued that there are benefits and risks for serious algorithmic trading. There was no direct evidence that the negotiation of computer itself increased volatility, he said, but in specific circumstances, it was possible for a series of events with unwanted interactions and the results to produce and cause enormous damage.
Related posts
- Samsung MV800 MultiView camera hands-on (video)
- IFA 2011 wrap-up
- Modern Warfare 3 limited edition Xbox 360 set opens up the latest wave of marketing hype
- Defunct satellite to fall from the sky
- HP 12c strike middle-aged screeds release anniversary edition (video)
- Dell S2330MX ultra-thin monitor finds it beautiful, in fact just above average
- Russia wants to Shut Down For YouTube piracy
- LG goes with great stylus-equipped plasma TVs PenTouch
- Tailgater DISH Network brings you the portable satellite TV, will not cool your beer (video)
- Apple continues Samsung iPhone in Japan over alleged patent violations iPad