Securities Technology Monitor (August 6)
High frequency trading “can wreak havoc in the global financial marketplace by amplifying moves on the up- and down-sides.” The “Knightmare on Wall Street” focused attention on this issue when a software glitch at Knight Capital caused almost 40 NYSE-listed stocks to move more than 10% in less than 60 minutes. “The problem with the rising popularity of High-Frequency Trading is that it may be distorting global financial markets significantly, increasingly destabilising those markets and causing the rise of systemic risk.”
High frequency trading “can wreak havoc in the global financial marketplace by amplifying moves on the up- and down-sides.” The “Knightmare on Wall Street” focused attention on this issue when a software glitch at Knight Capital caused almost 40 NYSE-listed stocks to move more than 10% in less than 60 minutes. “The problem with the rising popularity of High-Frequency Trading is that it may be distorting global financial markets significantly, increasingly destabilising those markets and causing the rise of systemic risk.”
Tags: Financial markets, High frequency trading, Knight Capital, NYSE, Risk, Wall Street
